arXiv Open Access 2022

Risk Theory and Pricing of "Pay-for-Performance" Business Models

Roger Knecktys Henrik Bette Rüdiger Kiesel Thomas Guhr
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Abstrak

Technology trends as digitalization and Industry 4.0 initiate a growing demand for new business models. Most of this models requires a fundamental shift of operational and financial risks between seller and buyer. A key question is therefore how to include additional risk pricing and hedging. In this paper we propose a new approach for a risk theory of innovative performance based business models as "Pay-for-Performance" or "Product as a Service". A new model and calculation method for determination the risk premium is presented. It contains beside financial price fluctuations also operational failure behaviour of products. We apply the model for a typical industrial application and simulate the pricing dependency for different cost distributions.

Topik & Kata Kunci

Penulis (4)

R

Roger Knecktys

H

Henrik Bette

R

Rüdiger Kiesel

T

Thomas Guhr

Format Sitasi

Knecktys, R., Bette, H., Kiesel, R., Guhr, T. (2022). Risk Theory and Pricing of "Pay-for-Performance" Business Models. https://arxiv.org/abs/2212.09585

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Tahun Terbit
2022
Bahasa
en
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arXiv
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Open Access ✓