CCM

CVM

SCSVM

Assumptions

1. Competition erosion is constant

2. NPD volatility is constant

1. Competition erosion is stochastic

2. NPD volatility is constant

1. Competition erosion is stochastic

2. NPD volatility is stochastic

Governing stochastic process

1. S(t) follows (2)

2. σ_S is constant

3. δ is constant

1. S(t) follows (2)

2. σ_S is constant

3. δ(t) follows (4)

1. S(t) follows (2)

2. σ_S(t) follows (3)

3. δ(t) follows (4)