Cost modeling
Financial transactions on the markets incure costs, whether they be market access fees, or market impact on the price of the security traded.
Cost modeling is the subject that tries to give a proper mathematical dynamics to the cost process in order to be able to include it in the pricing of some exotic products or strategies.
Cost models are used in circuit design and considered several different things:
- Number of Components / Cost of components
- Size of Circuit
- Ability to test
- Power Consumption