15 lines
616 B
Markdown
15 lines
616 B
Markdown
# 2026-01-09 14:45:??
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[[bid-price-modeling]]
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Suppose a true cost model,
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accounting for all relevant information available at time $t$.
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$C(t)$ returns a distribution whose [scale](https://en.wikipedia.org/wiki/Scale_parameter)
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decreases with $t$, and $C(0)$ maps to a single value.
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$t>0$ is time until the final payment.
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> 
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>
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> Figure: lognormal distributions with the same [location](https://en.wikipedia.org/wiki/Location_parameter)
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> varied by [scale](https://en.wikipedia.org/wiki/Scale_parameter). |