Method and device for calculating a forward price for using links in a network
US7720741B2 · kind B2 · utility
Assignee
Inventors
Key dates
| Filing date | Aug 25, 2008 |
| Grant date | May 18, 2010 |
| Priority date | — |
| Expiry date | Sep 3, 2028 |
Classification
- Technology area (CPC H)Electricity
- CPC primaryH04L2012/5639
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
The invention relates to a method for calculating in a network that comprises links a distribution of forward prices for using the links in the network. The method comprises the following steps:a) a provision step for providing an observed forward price of a forward contract for each of the links,b) a determination step for deriving from the observed forward prices a proposed joint distribution of forward prices by applying a forward pricing process to each of the links, thereby generating a geographical arbitrage in the network;c) an arbitrage reduction step for reducing the geographical arbitrage in the proposed joint distribution of forward prices by a geographical arbitrage reduction value;d) a verification step for verifying if the proposed joint distribution of forward prices together with the observed forward prices has a defined property in response to the determination step and the arbitrage reduction step;if the verification step results in the defined property being not presente) a generation step for generating a property reduction value;repeating the determination step, the arbitrage reduction step and the verification step, applying the property reduction value to the…
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.