As the distribution strategy, the bundle and add-on strategy has been widely applied to sell the base goods and add-on goods in retail markets. Meanwhile, the rapid growth of e-commerce has also forced more platforms to participate in the above strategies. Motivated by these, we consider three...

We extend the framework of trading strategies of Gatheral [2010] from single stocks to a pair of stocks. Our trading strategy with the executions of two round-trip trades can be described by the trading rates of the paired stocks and the ratio of their trading periods. By minimizing the...

There are non-vanishing price responses across different stocks in correlated financial markets. We further study this issue by performing different averages, which identify active and passive cross-responses. The two average cross-responses show different characteristic dependences on the time...