Subject: mit research on bandwidth pricing
gentlemen :
amit is a former mit sloan student whose research was sponsored by a program
set up by tom gros to learn more about bandwidth pricing and market effects .
we worked with him quite a bit for a while , as did vince kaminski and stinson
gibner , on this project . well , he has finally graduated and is in the
process of having his thesis published . he has offered to come down to
present his findings to anyone interested , so i am inquiring as to your level
of interest in order to schedule a meeting , if appropriate .
below is a short description of his work . please let me know your thoughts
and if you have any questions .
thanks , jay .
- -
james f . hawthorn
enron broadband services
global bandwidth risk management
+ 1 713 853 7606 telephone
+ 1 713 646 8795 facsimile
- - - - - forwarded by jay hawthorn / enron communications on 03 / 29 / 01 09 : 15 am
- - - - -
adhadwal @ mit . edu
03 / 20 / 01 03 : 50 pm
to : jay hawthorn / enron communications @ enron communications , adhadwal @ mit . edu
cc :
subject :
hi jay ,
as per our discussion this morning , will be terrific to come on down to talk
about the results of my thesis related to pricing & risk management of
forward contracts on bandwidths . thanks to the support from enron for this
work !
here ' s a brief description .
we addressed the problem of pricing and risk managment of forward contracts
on bandwidth under uncertain future available supply . this exposes the
seller to both the risk of perishability as well as the risk of
overcommitments . we consider a variety of selling strategies to map
commitment risk , and show how forward pricing varies over time under these
strategies . the managerial insights into dynamic forward pricing are neat !
have several graphs from simulations , and several math proofs .
there are two technical pricing papers from this thesis , now submitted for
publication . it will be great to share this knowledge with enron , thanks to
your support for the work , and also discuss how the results may be mapped
with real - life , possible modifications , and finally how they may be
programmed and used .
let me know your thoughts and interest level - maybe someone from vince ' s
group as well ? i can make the talk as technical as you want , depending on
the audience . at its core , it is math - heavy , but the insights can easily be
translated to a high - managerial level view , a more detailed trader - level
view , or a super - detailed research level view .
cheers ,
- amit