• Title/Summary/Keyword: Block pricing

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The Pricing Strategy for the Performance of Medical Service -­ Based on the Segmentation for the N­block tariff Pricing of Medical Examination­ - (의료서비스의 성과 제고를 위한 가격전략 -­건강검진료 다단계가격책정을 위한 시장세분화를 중심으로­-)

  • 백수경;곽영식
    • Health Policy and Management
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    • v.13 no.4
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    • pp.84-98
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    • 2003
  • This research objective is to determine the optimal price break points for n­block tariff, because comparing non­linear pricing with uniform pricing on the basis of profit, n­block tariff outperforms two­part tariff, all unit discount price schedule, and uniform pricing. Although the merits of non­linear pricing are well documented, the attempt to practice the non-linear pricing in medical service sector has been relatively rare. The determination of the parameters under n­block tariff is the interesting decision making agenda for marketers. Under n­block tariff, the marketers should decide the optimal price break points and the optimal marginal price for each price zone. The results can be summarized as follows: The researchers found that mixture model can be the feasible methodology for determining the optimal number of n­block tariff and identifying the optimal segmentation criteria. We demonstrate the feasibility and the superiority of the mixture model by applying it to the database of medical examination. The results appear that the number of patients per month can be the optimal segmentation variable. And 6­block tariff is the optimal price break for this medical service.

The Difference in the Performance among Non-linear Pricing Schedules in Medical Examination (건강검진 일반수가 비선형가격체계간 이익비교에 관한 연구)

  • Kwak, Young-Sik;Paik, Soo-Kyung;Yoon, Kyung-Jae
    • Health Policy and Management
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    • v.18 no.3
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    • pp.128-146
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    • 2008
  • Nonlinear pricing abounds in practice because it is a potentially powerful pricing method to explore consumer surplus. The various forms of nonlinear pricing are feasible within a given industry. In this context, it is important for manufacturers and retailers to understand which nonlinear pricing scheme is appropriate to apply in their specific situation and which nonlinear pricing schedule is the most profitable in their market situation. Although the merits of nonlinear pricing are well documented, the attempt to apply nonlinear pricing in medical service has been relatively rare. The researcher aims to try to full this gap by applying a practice-oriented simulation model to health examination data. We compare the sales volumes among nonlinear pricing scheme such as n-block tariff, two-part tariff, and uniform pricing. We found that n-block tariff outperforms two-part tariff and uniform pricing.

An Analysis of the Price Elasticity of Electricity Demand and Price Reform in the Korean Residential Sector Under Block Rate Pricing (구간별 가격체계를 고려한 우리나라 주택용 전력수요의 가격탄력성과 전력누진요금제 조정방안)

  • Jo, Ha-Hyun;Jang, Min-Woo
    • Environmental and Resource Economics Review
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    • v.24 no.2
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    • pp.365-410
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    • 2015
  • Block-rate structures are widely used in utility-pricing, including the Korean residential electricity sector. In the case of the current pricing structure, Korean citizens are highly concerned about incurring excessive electricity costs. For these reasons, there have been many discussions concerning mitigation of the strict pricing structure. Existing studies on the residential electricity demand function under block-rate structure have the following three issues - the consumer's budget constraint is non-linear, perceived price under block-rate structure is uncertain, block-rate structure has endogeneity in the price variable. In this context, this paper estimates the residential electricity demand function using micro-level household expenditure data and simulates the impact of alternative block-pricing schedules.

An Optimal Power Scheduling Method Applied in Home Energy Management System Based on Demand Response

  • Zhao, Zhuang;Lee, Won Cheol;Shin, Yoan;Song, Kyung-Bin
    • ETRI Journal
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    • v.35 no.4
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    • pp.677-686
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    • 2013
  • In this paper, we first introduce a general architecture of an energy management system in a home area network based on a smart grid. Then, we propose an efficient scheduling method for home power usage. The home gateway (HG) receives the demand response (DR) information indicating the real-time electricity price, which is transferred to an energy management controller (EMC). Referring to the DR, the EMC achieves an optimal power scheduling scheme, which is delivered to each electric appliance by the HG. Accordingly, all appliances in the home operate automatically in the most cost-effective way possible. In our research, to avoid the high peak-to-average ratio (PAR) of power, we combine the real-time pricing model with the inclining block rate model. By adopting this combined pricing model, our proposed power scheduling method effectively reduces both the electricity cost and the PAR, ultimately strengthening the stability of the entire electricity system.

Electricity Demand and the Impact of Pricing Reform: An Analysis with Household Expenditure Data (가구별 소비자료를 이용한 전력수요함수 추정 및 요금제도 변경의 효과 분석)

  • Kwon, Oh-Sang;Kang, Hye-Jung;Kim, Yong-Gun
    • Environmental and Resource Economics Review
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    • v.23 no.3
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    • pp.409-434
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    • 2014
  • This paper estimates household demand for electricity using a micro-level household expenditure data set. A two-stage estimation method where the endogenous block price estimates are obtained from a discrete block choice model is used. This method successfully identifies a downward sloping conditional demand function with the data, while both the usual two-stage method with instrumental variable estimation and the Hewitt-Hanemann discrete-continuous model fail to do that. The paper simulates the impacts of two hypothetical pricing reforms that reduce the number of blocks and make the price gap smaller. It is shown that the reform may increase the overall consumer benefit, but is regressive.

AN ADAPTIVE MULTIGRID TECHNIQUE FOR OPTION PRICING UNDER THE BLACK-SCHOLES MODEL

  • Jeong, Darae;Li, Yibao;Choi, Yongho;Moon, Kyoung-Sook;Kim, Junseok
    • Journal of the Korean Society for Industrial and Applied Mathematics
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    • v.17 no.4
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    • pp.295-306
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    • 2013
  • In this paper, we consider the adaptive multigrid method for solving the Black-Scholes equation to improve the efficiency of the option pricing. Adaptive meshing is generally regarded as an indispensable tool because of reduction of the computational costs. The Black-Scholes equation is discretized using a Crank-Nicolson scheme on block-structured adaptively refined rectangular meshes. And the resulting discrete equations are solved by a fast solver such as a multigrid method. Numerical simulations are performed to confirm the efficiency of the adaptive multigrid technique. In particular, through the comparison of computational results on adaptively refined mesh and uniform mesh, we show that adaptively refined mesh solver is superior to a standard method.

Remark on the Problems of Survey Methods Applied to Customer Satisfaction for Discount Stores (대형 할인매장 고객만족 설문조사 방법에 대한 제고)

  • 손소영;장종상
    • Journal of Korean Society for Quality Management
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    • v.26 no.2
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    • pp.93-105
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    • 1998
  • Many large scale discount stores try to enter the market in newly developed city areas. In order to sucessfully increase the market share, it is essential for them to understand customers' needs. In doing so, various forms of survey methods are often used and survey forms can influence respondents' decision. The main objective of this paper is to check consistency of different survey methods in terms of deriving the expected market share. In this paper, we a, pp.y two survey forms for both AHP and conjoint analyses using a randomized complete block design. Using AHP, we compare Kim's club, Carf, E-mart and Macro in terms of the following four customer attributes: parking facility, size of store, business hours, and special pricing policy. In conjoint analysis, we estimate the part-worth of each level of the customer's attribute so that one can design the best store which would optimizethe customer's attribute so that one can design the best store which would optimize the customer's utility. Empirical comparison results indicate very low consistency between the two methods. It implies the importance of verification methods of survey. We also analyze the impact of special pricing policy using a meta analysis. It turns out that older customers are a, pp.rently more sensitive to pricing policy.

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Block Trading Based Volatility Forecasting: An Application of VACD-FIGARCH Model

  • TU, Teng-Tsai;LIAO, Chih-Wei
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.4
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    • pp.59-70
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    • 2020
  • The purpose of this study is to construct the ACD model for the block trading volume duration. The ACD model based on the block trading volume duration is referred to as Volume ACD (VACD) in this study. By integrating with GARCH-type models, the VACD based GARCH type models, which include VACD-GARCH, VACD-IGARCH and VACD-FIGARCH models, are set up. This study selects Chunghwa Telecom (CHT) Inc., offering the America Depository Receipt (ADR) in NYSE, to investigate the block trading volume duration in Taiwanese equity market. The empirical results indicate that the long memory in volume duration series increases dependence at level of volatility clustering by VACD (2,1)-FIGARCH (3,d,1) model. Moreover, the VACD (2,1)-IGARCH (1,1) exhibits relatively better performance of prediction on capturing block trading volume duration. This volatility model is more appropriate in this study to portray the change of the CHT Inc. prices and provides more information about the volatility process for investment strategy, which can be a reference indicator of financial asset pricing, hedging strategy and risk management.

Investigating the Impacts of Different Price-Based Demand Response Programs on Home Load Management

  • Rastegar, Mohammad;Fotuhi-Firuzabad, Mahmud;Choi, Jaeseok
    • Journal of Electrical Engineering and Technology
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    • v.9 no.3
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    • pp.1125-1131
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    • 2014
  • Application of residential demand response (DR) programs are currently realized up to a limited extent due to customers' difficulty in manually responding to the time-differentiated prices. As a solution, this paper proposes an automatic home load management (HLM) framework to achieve the household minimum payment as well as meet the operational constraints to provide customer's comfort. The projected HLM method controls on/off statuses of responsive appliances and the charging/discharging periods of plug-in hybrid electric vehicle (PHEV) and battery storage at home. This paper also studies the impacts of different time-varying tariffs, i.e., time of use (TOU), real time pricing (RTP), and inclining block rate (IBR), on the home load management (HLM). The study is effectuated in a smart home with electrical appliances, a PHEV, and a storage system. The simulation results are presented to demonstrate the effectiveness of the proposed HLM program. Peak of household load demand along with the customer payment costs are reported as the consequence of applying different pricings models in HLM.

Indirection based Multilevel Security Model and Application of Rehabilitation Psychology Analysis System (재활심리분석시스템의 다중 우회기반 접근통제 모델 및 응용)

  • Kim, Young-Soo;Jo, Sun-Goo
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.17 no.10
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    • pp.2301-2308
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    • 2013
  • These days, Rehabilitation psychology analysis system is being used by world wide web in everyday's life. And on the other hand, we are facing spam messages' problems. To block these spam message, we are using filtering or pricing systems. But these solutions are raising other problems such as impediment in reception or availability caused by false positive or payment resistance. To solve these problems, we propose an Indirect Model on Message Control System(IMMCS) which controls an unsolicited message and prevents an useful message from discarding. We design and implement the IMMCS to enhance the usefulness and the availability. Being tested the IMMCS to verify the usability and the efficiency, it gave us a very successful result.