In this paper a new approach to pricing American options is proposed and termed the canonical implied binomial (CIB) tree method. CIB takes advantage of both canonical valuation (Stutzer, 1996) and the implied binomial tree method (Rubinstein, 1994). Using simulated returns from geometric...

Structural models have become a frontier tool in business and economics research. In this survey, we discuss the literature on structural models for the prescription drug market, which has attracted a significant attention from researchers in marketing and economics, and related fields. The...

This paper examines the spillover effects of promotions when products from different firms are consumed in a bundle. Using data from the HIV/AIDS category, a canonical example of combination therapy, we estimate a hierarchical Bayesian logit model across treatment regimens and show that...

The recently proposed canonical least-squares Monte Carlo (CLM) method is extended by incorporating uniquely a variance constraint in the derivation of the equivalent martingale measure used by CLM. This derivation can be viewed as a change of measure numerically by modifying both the drift term...

Whether China's low fertility rate is the consequence of the country's strict population control policy is a puzzling question. This paper attempts to disentangle the Chinese population control policy's impacts on the fertility rate from socioeconomic factors using the synthetic control method...

Whether China's low fertility rate is the consequence of the country's strict population control policy is a puzzling question. This paper attempts to disentangle the Chinese population control policy's impacts on the fertility rate from socioeconomic factors using the synthetic control method...

Options pricing and hedging under canonical valuation have recently been demonstrated to be quite effective, but unfortunately are only applicable to European options. In this paper, a variation of canonical valuation called canonical least-squares Monte Carlo is proposed to price American...

Pharmaceutical firms continue to advertise more and more prescription drugs directly to consumers, advocating them to discuss the focal health condition and the efficacy of the advertised drug with their physicians. In this paper, we investigate the effectiveness of such direct-to-consumer...