• Title/Summary/Keyword: Complex algorithm

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Target Word Selection Disambiguation using Untagged Text Data in English-Korean Machine Translation (영한 기계 번역에서 미가공 텍스트 데이터를 이용한 대역어 선택 중의성 해소)

  • Kim Yu-Seop;Chang Jeong-Ho
    • The KIPS Transactions:PartB
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    • v.11B no.6
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    • pp.749-758
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    • 2004
  • In this paper, we propose a new method utilizing only raw corpus without additional human effort for disambiguation of target word selection in English-Korean machine translation. We use two data-driven techniques; one is the Latent Semantic Analysis(LSA) and the other the Probabilistic Latent Semantic Analysis(PLSA). These two techniques can represent complex semantic structures in given contexts like text passages. We construct linguistic semantic knowledge by using the two techniques and use the knowledge for target word selection in English-Korean machine translation. For target word selection, we utilize a grammatical relationship stored in a dictionary. We use k- nearest neighbor learning algorithm for the resolution of data sparseness Problem in target word selection and estimate the distance between instances based on these models. In experiments, we use TREC data of AP news for construction of latent semantic space and Wail Street Journal corpus for evaluation of target word selection. Through the Latent Semantic Analysis methods, the accuracy of target word selection has improved over 10% and PLSA has showed better accuracy than LSA method. finally we have showed the relatedness between the accuracy and two important factors ; one is dimensionality of latent space and k value of k-NT learning by using correlation calculation.

The Evaluation of Meteorological Inputs retrieved from MODIS for Estimation of Gross Primary Productivity in the US Corn Belt Region (MODIS 위성 영상 기반의 일차생산성 알고리즘 입력 기상 자료의 신뢰도 평가: 미국 Corn Belt 지역을 중심으로)

  • Lee, Ji-Hye;Kang, Sin-Kyu;Jang, Keun-Chang;Ko, Jong-Han;Hong, Suk-Young
    • Korean Journal of Remote Sensing
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    • v.27 no.4
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    • pp.481-494
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    • 2011
  • Investigation of the $CO_2$ exchange between biosphere and atmosphere at regional, continental, and global scales can be directed to combining remote sensing with carbon cycle process to estimate vegetation productivity. NASA Earth Observing System (EOS) currently produces a regular global estimate of gross primary productivity (GPP) and annual net primary productivity (NPP) of the entire terrestrial earth surface at 1 km spatial resolution. While the MODIS GPP algorithm uses meteorological data provided by the NASA Data Assimilation Office (DAO), the sub-pixel heterogeneity or complex terrain are generally reflected due to coarse spatial resolutions of the DAO data (a resolution of $1{\circ}\;{\times}\;1.25{\circ}$). In this study, we estimated inputs retrieved from MODIS products of the AQUA and TERRA satellites with 5 km spatial resolution for the purpose of finer GPP and/or NPP determinations. The derivatives included temperature, VPD, and solar radiation. Seven AmeriFlux data located in the Corn Belt region were obtained to use for evaluation of the input data from MODIS. MODIS-derived air temperature values showed a good agreement with ground-based observations. The mean error (ME) and coefficient of correlation (R) ranged from $-0.9^{\circ}C$ to $+5.2^{\circ}C$ and from 0.83 to 0.98, respectively. VPD somewhat coarsely agreed with tower observations (ME = -183.8 Pa ~ +382.1 Pa; R = 0.51 ~ 0.92). While MODIS-derived shortwave radiation showed a good correlation with observations, it was slightly overestimated (ME = -0.4 MJ $day^{-1}$ ~ +7.9 MJ $day^{-1}$; R = 0.67 ~ 0.97). Our results indicate that the use of inputs derived MODIS atmosphere and land products can provide a useful tool for estimating crop GPP.

Urban archaeological investigations using surface 3D Ground Penetrating Radar and Electrical Resistivity Tomography methods (3차원 지표레이다와 전기비저항 탐사를 이용한 도심지 유적 조사)

  • Papadopoulos, Nikos;Sarris, Apostolos;Yi, Myeong-Jong;Kim, Jung-Ho
    • Geophysics and Geophysical Exploration
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    • v.12 no.1
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    • pp.56-68
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    • 2009
  • Ongoing and extensive urbanisation, which is frequently accompanied with careless construction works, may threaten important archaeological structures that are still buried in the urban areas. Ground Penetrating Radar (GPR) and Electrical Resistivity Tomography (ERT) methods are most promising alternatives for resolving buried archaeological structures in urban territories. In this work, three case studies are presented, each of which involves an integrated geophysical survey employing the surface three-dimensional (3D) ERT and GPR techniques, in order to archaeologically characterise the investigated areas. The test field sites are located at the historical centres of two of the most populated cities of the island of Crete, in Greece. The ERT and GPR data were collected along a dense network of parallel profiles. The subsurface resistivity structure was reconstructed by processing the apparent resistivity data with a 3D inversion algorithm. The GPR sections were processed with a systematic way, applying specific filters to the data in order to enhance their information content. Finally, horizontal depth slices representing the 3D variation of the physical properties were created. The GPR and ERT images significantly contributed in reconstructing the complex subsurface properties in these urban areas. Strong GPR reflections and highresistivity anomalies were correlated with possible archaeological structures. Subsequent excavations in specific places at both sites verified the geophysical results. The specific case studies demonstrated the applicability of ERT and GPR techniques during the design and construction stages of urban infrastructure works, indicating areas of archaeological significance and guiding archaeological excavations before construction work.

Application of Machine Learning Algorithm and Remote-sensed Data to Estimate Forest Gross Primary Production at Multi-sites Level (산림 총일차생산량 예측의 공간적 확장을 위한 인공위성 자료와 기계학습 알고리즘의 활용)

  • Lee, Bora;Kim, Eunsook;Lim, Jong-Hwan;Kang, Minseok;Kim, Joon
    • Korean Journal of Remote Sensing
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    • v.35 no.6_2
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    • pp.1117-1132
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    • 2019
  • Forest covers 30% of the Earth's land area and plays an important role in global carbon flux through its ability to store much greater amounts of carbon than other terrestrial ecosystems. The Gross Primary Production (GPP) represents the productivity of forest ecosystems according to climate change and its effect on the phenology, health, and carbon cycle. In this study, we estimated the daily GPP for a forest ecosystem using remote-sensed data from Moderate Resolution Imaging Spectroradiometer (MODIS) and machine learning algorithms Support Vector Machine (SVM). MODIS products were employed to train the SVM model from 75% to 80% data of the total study period and validated using eddy covariance measurement (EC) data at the six flux tower sites. We also compare the GPP derived from EC and MODIS (MYD17). The MODIS products made use of two data sets: one for Processed MODIS that included calculated by combined products (e.g., Vapor Pressure Deficit), another one for Unprocessed MODIS that used MODIS products without any combined calculation. Statistical analyses, including Pearson correlation coefficient (R), mean squared error (MSE), and root mean square error (RMSE) were used to evaluate the outcomes of the model. In general, the SVM model trained by the Unprocessed MODIS (R = 0.77 - 0.94, p < 0.001) derived from the multi-sites outperformed those trained at a single-site (R = 0.75 - 0.95, p < 0.001). These results show better performance trained by the data including various events and suggest the possibility of using remote-sensed data without complex processes to estimate GPP such as non-stationary ecological processes.

Simulation and Post-representation: a study of Algorithmic Art (시뮬라시옹과 포스트-재현 - 알고리즘 아트를 중심으로)

  • Lee, Soojin
    • 기호학연구
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    • no.56
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    • pp.45-70
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    • 2018
  • Criticism of the postmodern philosophy of the system of representation, which has continued since the Renaissance, is based on a critique of the dichotomy that separates the subjects and objects and the environment from the human being. Interactivity, highlighted in a series of works emerging as postmodern trends in the 1960s, was transmitted to an interactive aspect of digital art in the late 1990s. The key feature of digital art is the possibility of infinite variations reflecting unpredictable changes based on public participation on the spot. In this process, the importance of computer programs is highlighted. Instead of using the existing program as it is, more and more artists are creating and programming their own algorithms or creating unique algorithms through collaborations with programmers. We live in an era of paradigm shift in which programming itself must be considered as a creative act. Simulation technology and VR technology draw attention as a technique to represent the meaning of reality. Simulation technology helps artists create experimental works. In fact, Baudrillard's concept of Simulation defines the other reality that has nothing to do with our reality, rather than a reality that is extremely representative of our reality. His book Simulacra and Simulation refers to the existence of a reality entirely different from the traditional concept of reality. His argument does not concern the problems of right and wrong. There is no metaphysical meaning. Applying the concept of simulation to algorithmic art, the artist models the complex attributes of reality in the digital system. And it aims to build and integrate internal laws that structure and activate the world (specific or individual), that is to say, simulate the world. If the images of the traditional order correspond to the reproduction of the real world, the synthesized images of algorithmic art and simulated space-time are the forms of art that facilitate the experience. The moment of seeing and listening to the work of Ian Cheng presented in this article is a moment of personal experience and the perception is made at that time. It is not a complete and closed process, but a continuous and changing process. It is this active and situational awareness that is required to the audience for the comprehension of post-representation's forms.

Predicting stock movements based on financial news with systematic group identification (시스템적인 군집 확인과 뉴스를 이용한 주가 예측)

  • Seong, NohYoon;Nam, Kihwan
    • Journal of Intelligence and Information Systems
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    • v.25 no.3
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    • pp.1-17
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    • 2019
  • Because stock price forecasting is an important issue both academically and practically, research in stock price prediction has been actively conducted. The stock price forecasting research is classified into using structured data and using unstructured data. With structured data such as historical stock price and financial statements, past studies usually used technical analysis approach and fundamental analysis. In the big data era, the amount of information has rapidly increased, and the artificial intelligence methodology that can find meaning by quantifying string information, which is an unstructured data that takes up a large amount of information, has developed rapidly. With these developments, many attempts with unstructured data are being made to predict stock prices through online news by applying text mining to stock price forecasts. The stock price prediction methodology adopted in many papers is to forecast stock prices with the news of the target companies to be forecasted. However, according to previous research, not only news of a target company affects its stock price, but news of companies that are related to the company can also affect the stock price. However, finding a highly relevant company is not easy because of the market-wide impact and random signs. Thus, existing studies have found highly relevant companies based primarily on pre-determined international industry classification standards. However, according to recent research, global industry classification standard has different homogeneity within the sectors, and it leads to a limitation that forecasting stock prices by taking them all together without considering only relevant companies can adversely affect predictive performance. To overcome the limitation, we first used random matrix theory with text mining for stock prediction. Wherever the dimension of data is large, the classical limit theorems are no longer suitable, because the statistical efficiency will be reduced. Therefore, a simple correlation analysis in the financial market does not mean the true correlation. To solve the issue, we adopt random matrix theory, which is mainly used in econophysics, to remove market-wide effects and random signals and find a true correlation between companies. With the true correlation, we perform cluster analysis to find relevant companies. Also, based on the clustering analysis, we used multiple kernel learning algorithm, which is an ensemble of support vector machine to incorporate the effects of the target firm and its relevant firms simultaneously. Each kernel was assigned to predict stock prices with features of financial news of the target firm and its relevant firms. The results of this study are as follows. The results of this paper are as follows. (1) Following the existing research flow, we confirmed that it is an effective way to forecast stock prices using news from relevant companies. (2) When looking for a relevant company, looking for it in the wrong way can lower AI prediction performance. (3) The proposed approach with random matrix theory shows better performance than previous studies if cluster analysis is performed based on the true correlation by removing market-wide effects and random signals. The contribution of this study is as follows. First, this study shows that random matrix theory, which is used mainly in economic physics, can be combined with artificial intelligence to produce good methodologies. This suggests that it is important not only to develop AI algorithms but also to adopt physics theory. This extends the existing research that presented the methodology by integrating artificial intelligence with complex system theory through transfer entropy. Second, this study stressed that finding the right companies in the stock market is an important issue. This suggests that it is not only important to study artificial intelligence algorithms, but how to theoretically adjust the input values. Third, we confirmed that firms classified as Global Industrial Classification Standard (GICS) might have low relevance and suggested it is necessary to theoretically define the relevance rather than simply finding it in the GICS.

A Study on Training Dataset Configuration for Deep Learning Based Image Matching of Multi-sensor VHR Satellite Images (다중센서 고해상도 위성영상의 딥러닝 기반 영상매칭을 위한 학습자료 구성에 관한 연구)

  • Kang, Wonbin;Jung, Minyoung;Kim, Yongil
    • Korean Journal of Remote Sensing
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    • v.38 no.6_1
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    • pp.1505-1514
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    • 2022
  • Image matching is a crucial preprocessing step for effective utilization of multi-temporal and multi-sensor very high resolution (VHR) satellite images. Deep learning (DL) method which is attracting widespread interest has proven to be an efficient approach to measure the similarity between image pairs in quick and accurate manner by extracting complex and detailed features from satellite images. However, Image matching of VHR satellite images remains challenging due to limitations of DL models in which the results are depending on the quantity and quality of training dataset, as well as the difficulty of creating training dataset with VHR satellite images. Therefore, this study examines the feasibility of DL-based method in matching pair extraction which is the most time-consuming process during image registration. This paper also aims to analyze factors that affect the accuracy based on the configuration of training dataset, when developing training dataset from existing multi-sensor VHR image database with bias for DL-based image matching. For this purpose, the generated training dataset were composed of correct matching pairs and incorrect matching pairs by assigning true and false labels to image pairs extracted using a grid-based Scale Invariant Feature Transform (SIFT) algorithm for a total of 12 multi-temporal and multi-sensor VHR images. The Siamese convolutional neural network (SCNN), proposed for matching pair extraction on constructed training dataset, proceeds with model learning and measures similarities by passing two images in parallel to the two identical convolutional neural network structures. The results from this study confirm that data acquired from VHR satellite image database can be used as DL training dataset and indicate the potential to improve efficiency of the matching process by appropriate configuration of multi-sensor images. DL-based image matching techniques using multi-sensor VHR satellite images are expected to replace existing manual-based feature extraction methods based on its stable performance, thus further develop into an integrated DL-based image registration framework.

Sentiment Analysis of Movie Review Using Integrated CNN-LSTM Mode (CNN-LSTM 조합모델을 이용한 영화리뷰 감성분석)

  • Park, Ho-yeon;Kim, Kyoung-jae
    • Journal of Intelligence and Information Systems
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    • v.25 no.4
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    • pp.141-154
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    • 2019
  • Rapid growth of internet technology and social media is progressing. Data mining technology has evolved to enable unstructured document representations in a variety of applications. Sentiment analysis is an important technology that can distinguish poor or high-quality content through text data of products, and it has proliferated during text mining. Sentiment analysis mainly analyzes people's opinions in text data by assigning predefined data categories as positive and negative. This has been studied in various directions in terms of accuracy from simple rule-based to dictionary-based approaches using predefined labels. In fact, sentiment analysis is one of the most active researches in natural language processing and is widely studied in text mining. When real online reviews aren't available for others, it's not only easy to openly collect information, but it also affects your business. In marketing, real-world information from customers is gathered on websites, not surveys. Depending on whether the website's posts are positive or negative, the customer response is reflected in the sales and tries to identify the information. However, many reviews on a website are not always good, and difficult to identify. The earlier studies in this research area used the reviews data of the Amazon.com shopping mal, but the research data used in the recent studies uses the data for stock market trends, blogs, news articles, weather forecasts, IMDB, and facebook etc. However, the lack of accuracy is recognized because sentiment calculations are changed according to the subject, paragraph, sentiment lexicon direction, and sentence strength. This study aims to classify the polarity analysis of sentiment analysis into positive and negative categories and increase the prediction accuracy of the polarity analysis using the pretrained IMDB review data set. First, the text classification algorithm related to sentiment analysis adopts the popular machine learning algorithms such as NB (naive bayes), SVM (support vector machines), XGboost, RF (random forests), and Gradient Boost as comparative models. Second, deep learning has demonstrated discriminative features that can extract complex features of data. Representative algorithms are CNN (convolution neural networks), RNN (recurrent neural networks), LSTM (long-short term memory). CNN can be used similarly to BoW when processing a sentence in vector format, but does not consider sequential data attributes. RNN can handle well in order because it takes into account the time information of the data, but there is a long-term dependency on memory. To solve the problem of long-term dependence, LSTM is used. For the comparison, CNN and LSTM were chosen as simple deep learning models. In addition to classical machine learning algorithms, CNN, LSTM, and the integrated models were analyzed. Although there are many parameters for the algorithms, we examined the relationship between numerical value and precision to find the optimal combination. And, we tried to figure out how the models work well for sentiment analysis and how these models work. This study proposes integrated CNN and LSTM algorithms to extract the positive and negative features of text analysis. The reasons for mixing these two algorithms are as follows. CNN can extract features for the classification automatically by applying convolution layer and massively parallel processing. LSTM is not capable of highly parallel processing. Like faucets, the LSTM has input, output, and forget gates that can be moved and controlled at a desired time. These gates have the advantage of placing memory blocks on hidden nodes. The memory block of the LSTM may not store all the data, but it can solve the CNN's long-term dependency problem. Furthermore, when LSTM is used in CNN's pooling layer, it has an end-to-end structure, so that spatial and temporal features can be designed simultaneously. In combination with CNN-LSTM, 90.33% accuracy was measured. This is slower than CNN, but faster than LSTM. The presented model was more accurate than other models. In addition, each word embedding layer can be improved when training the kernel step by step. CNN-LSTM can improve the weakness of each model, and there is an advantage of improving the learning by layer using the end-to-end structure of LSTM. Based on these reasons, this study tries to enhance the classification accuracy of movie reviews using the integrated CNN-LSTM model.

A Study on Knowledge Entity Extraction Method for Individual Stocks Based on Neural Tensor Network (뉴럴 텐서 네트워크 기반 주식 개별종목 지식개체명 추출 방법에 관한 연구)

  • Yang, Yunseok;Lee, Hyun Jun;Oh, Kyong Joo
    • Journal of Intelligence and Information Systems
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    • v.25 no.2
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    • pp.25-38
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    • 2019
  • Selecting high-quality information that meets the interests and needs of users among the overflowing contents is becoming more important as the generation continues. In the flood of information, efforts to reflect the intention of the user in the search result better are being tried, rather than recognizing the information request as a simple string. Also, large IT companies such as Google and Microsoft focus on developing knowledge-based technologies including search engines which provide users with satisfaction and convenience. Especially, the finance is one of the fields expected to have the usefulness and potential of text data analysis because it's constantly generating new information, and the earlier the information is, the more valuable it is. Automatic knowledge extraction can be effective in areas where information flow is vast, such as financial sector, and new information continues to emerge. However, there are several practical difficulties faced by automatic knowledge extraction. First, there are difficulties in making corpus from different fields with same algorithm, and it is difficult to extract good quality triple. Second, it becomes more difficult to produce labeled text data by people if the extent and scope of knowledge increases and patterns are constantly updated. Third, performance evaluation is difficult due to the characteristics of unsupervised learning. Finally, problem definition for automatic knowledge extraction is not easy because of ambiguous conceptual characteristics of knowledge. So, in order to overcome limits described above and improve the semantic performance of stock-related information searching, this study attempts to extract the knowledge entity by using neural tensor network and evaluate the performance of them. Different from other references, the purpose of this study is to extract knowledge entity which is related to individual stock items. Various but relatively simple data processing methods are applied in the presented model to solve the problems of previous researches and to enhance the effectiveness of the model. From these processes, this study has the following three significances. First, A practical and simple automatic knowledge extraction method that can be applied. Second, the possibility of performance evaluation is presented through simple problem definition. Finally, the expressiveness of the knowledge increased by generating input data on a sentence basis without complex morphological analysis. The results of the empirical analysis and objective performance evaluation method are also presented. The empirical study to confirm the usefulness of the presented model, experts' reports about individual 30 stocks which are top 30 items based on frequency of publication from May 30, 2017 to May 21, 2018 are used. the total number of reports are 5,600, and 3,074 reports, which accounts about 55% of the total, is designated as a training set, and other 45% of reports are designated as a testing set. Before constructing the model, all reports of a training set are classified by stocks, and their entities are extracted using named entity recognition tool which is the KKMA. for each stocks, top 100 entities based on appearance frequency are selected, and become vectorized using one-hot encoding. After that, by using neural tensor network, the same number of score functions as stocks are trained. Thus, if a new entity from a testing set appears, we can try to calculate the score by putting it into every single score function, and the stock of the function with the highest score is predicted as the related item with the entity. To evaluate presented models, we confirm prediction power and determining whether the score functions are well constructed by calculating hit ratio for all reports of testing set. As a result of the empirical study, the presented model shows 69.3% hit accuracy for testing set which consists of 2,526 reports. this hit ratio is meaningfully high despite of some constraints for conducting research. Looking at the prediction performance of the model for each stocks, only 3 stocks, which are LG ELECTRONICS, KiaMtr, and Mando, show extremely low performance than average. this result maybe due to the interference effect with other similar items and generation of new knowledge. In this paper, we propose a methodology to find out key entities or their combinations which are necessary to search related information in accordance with the user's investment intention. Graph data is generated by using only the named entity recognition tool and applied to the neural tensor network without learning corpus or word vectors for the field. From the empirical test, we confirm the effectiveness of the presented model as described above. However, there also exist some limits and things to complement. Representatively, the phenomenon that the model performance is especially bad for only some stocks shows the need for further researches. Finally, through the empirical study, we confirmed that the learning method presented in this study can be used for the purpose of matching the new text information semantically with the related stocks.

The Impact of Market Environments on Optimal Channel Strategy Involving an Internet Channel: A Game Theoretic Approach (시장 환경이 인터넷 경로를 포함한 다중 경로 관리에 미치는 영향에 관한 연구: 게임 이론적 접근방법)

  • Yoo, Weon-Sang
    • Journal of Distribution Research
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    • v.16 no.2
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    • pp.119-138
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    • 2011
  • Internet commerce has been growing at a rapid pace for the last decade. Many firms try to reach wider consumer markets by adding the Internet channel to the existing traditional channels. Despite the various benefits of the Internet channel, a significant number of firms failed in managing the new type of channel. Previous studies could not cleary explain these conflicting results associated with the Internet channel. One of the major reasons is most of the previous studies conducted analyses under a specific market condition and claimed that as the impact of Internet channel introduction. Therefore, their results are strongly influenced by the specific market settings. However, firms face various market conditions in the real worlddensity and disutility of using the Internet. The purpose of this study is to investigate the impact of various market environments on a firm's optimal channel strategy by employing a flexible game theory model. We capture various market conditions with consumer density and disutility of using the Internet.

    shows the channel structures analyzed in this study. Before the Internet channel is introduced, a monopoly manufacturer sells its products through an independent physical store. From this structure, the manufacturer could introduce its own Internet channel (MI). The independent physical store could also introduce its own Internet channel and coordinate it with the existing physical store (RI). An independent Internet retailer such as Amazon could enter this market (II). In this case, two types of independent retailers compete with each other. In this model, consumers are uniformly distributed on the two dimensional space. Consumer heterogeneity is captured by a consumer's geographical location (ci) and his disutility of using the Internet channel (${\delta}_{N_i}$).
    shows various market conditions captured by the two consumer heterogeneities.
    (a) illustrates a market with symmetric consumer distributions. The model captures explicitly the asymmetric distributions of consumer disutility in a market as well. In a market like that is represented in
    (c), the average consumer disutility of using an Internet store is relatively smaller than that of using a physical store. For example, this case represents the market in which 1) the product is suitable for Internet transactions (e.g., books) or 2) the level of E-Commerce readiness is high such as in Denmark or Finland. On the other hand, the average consumer disutility when using an Internet store is relatively greater than that of using a physical store in a market like (b). Countries like Ukraine and Bulgaria, or the market for "experience goods" such as shoes, could be examples of this market condition. summarizes the various scenarios of consumer distributions analyzed in this study. The range for disutility of using the Internet (${\delta}_{N_i}$) is held constant, while the range of consumer distribution (${\chi}_i$) varies from -25 to 25, from -50 to 50, from -100 to 100, from -150 to 150, and from -200 to 200.
    summarizes the analysis results. As the average travel cost in a market decreases while the average disutility of Internet use remains the same, average retail price, total quantity sold, physical store profit, monopoly manufacturer profit, and thus, total channel profit increase. On the other hand, the quantity sold through the Internet and the profit of the Internet store decrease with a decreasing average travel cost relative to the average disutility of Internet use. We find that a channel that has an advantage over the other kind of channel serves a larger portion of the market. In a market with a high average travel cost, in which the Internet store has a relative advantage over the physical store, for example, the Internet store becomes a mass-retailer serving a larger portion of the market. This result implies that the Internet becomes a more significant distribution channel in those markets characterized by greater geographical dispersion of buyers, or as consumers become more proficient in Internet usage. The results indicate that the degree of price discrimination also varies depending on the distribution of consumer disutility in a market. The manufacturer in a market in which the average travel cost is higher than the average disutility of using the Internet has a stronger incentive for price discrimination than the manufacturer in a market where the average travel cost is relatively lower. We also find that the manufacturer has a stronger incentive to maintain a high price level when the average travel cost in a market is relatively low. Additionally, the retail competition effect due to Internet channel introduction strengthens as average travel cost in a market decreases. This result indicates that a manufacturer's channel power relative to that of the independent physical retailer becomes stronger with a decreasing average travel cost. This implication is counter-intuitive, because it is widely believed that the negative impact of Internet channel introduction on a competing physical retailer is more significant in a market like Russia, where consumers are more geographically dispersed, than in a market like Hong Kong, that has a condensed geographic distribution of consumers.
    illustrates how this happens. When mangers consider the overall impact of the Internet channel, however, they should consider not only channel power, but also sales volume. When both are considered, the introduction of the Internet channel is revealed as more harmful to a physical retailer in Russia than one in Hong Kong, because the sales volume decrease for a physical store due to Internet channel competition is much greater in Russia than in Hong Kong. The results show that manufacturer is always better off with any type of Internet store introduction. The independent physical store benefits from opening its own Internet store when the average travel cost is higher relative to the disutility of using the Internet. Under an opposite market condition, however, the independent physical retailer could be worse off when it opens its own Internet outlet and coordinates both outlets (RI). This is because the low average travel cost significantly reduces the channel power of the independent physical retailer, further aggravating the already weak channel power caused by myopic inter-channel price coordination. The results implies that channel members and policy makers should explicitly consider the factors determining the relative distributions of both kinds of consumer disutility, when they make a channel decision involving an Internet channel. These factors include the suitability of a product for Internet shopping, the level of E-Commerce readiness of a market, and the degree of geographic dispersion of consumers in a market. Despite the academic contributions and managerial implications, this study is limited in the following ways. First, a series of numerical analyses were conducted to derive equilibrium solutions due to the complex forms of demand functions. In the process, we set up V=100, ${\lambda}$=1, and ${\beta}$=0.01. Future research may change this parameter value set to check the generalizability of this study. Second, the five different scenarios for market conditions were analyzed. Future research could try different sets of parameter ranges. Finally, the model setting allows only one monopoly manufacturer in the market. Accommodating competing multiple manufacturers (brands) would generate more realistic results.

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