• ETRI Journal
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• v.10 no.4
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• pp.146-160
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• 1988

The purpose of the present study is to build a model to determine the structure of long-term quasi-optimal rates of local and toll telephone services. The outline of this study is as follows : Telephone business, providing social goods, is capital-intensive industry which needs huge fixed cost to operate exchanges and telephone networks nationwide. The nature of above industry justifies the market structure of telephone business to be natural monopoly and makes a good reason for government's direct regulation, that is, price regulation. Three is a gap between the present rates and the quasi-optimal ones because some administrative processes intervene in rate making process before execution. On the above diagnostic basis, the present study made an empirical test for the optimality of present rates structure in connection with Ramsey-Boiteux model to maximize the sum of producer's and consumer's surplus and also the current study proposed a qusasi-optimal rates structure for better market performance. From the empirical analysis, we can deduce a policy recommendation the local price should be increased to 47% whereas toll price decreased to 24% in order to improve the net welfare worth of 32.6 billion won.

• Journal of Technology Innovation
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• v.5 no.1
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• pp.249-265
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• 1997

With current difficulties in Korean agricultural sector, the biotechnology is considered as the most important factor to offset the inferiority in the agriculture. New products by using the biotechnology would be commercialized and consumed by both producers and consumers. Before its production and distribution, researches on new product should be undertaken in many aspects, especially in terms of economic aspects. Main objectives of this study are to measure the economic value of the new product using the agro-biotechnology, here potato microtubers, and to examine whether the stated peferences theory, the Contingent Valuation Method(CVM), could be accepted in the economic analysis for the new biotech product. Through the demand function derived from the consequences of functional relationship relationship, the consumer's surplus was estimated.

• KDI Journal of Economic Policy
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• v.39 no.1
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• pp.83-102
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• 2017

Price control can restore efficiency in some cases, but an uncarefully designed policy fails to restore efficiency, yields side effects, or even exacerbates efficiency losses. This paper shows that the copyright royalty rule, which takes the greater of ad valorem royalties and perunit royalties, tends to fix the prices of final goods at a specific level. Such a rule weakens competition as it prevents prices from decreasing even when market conditions change, having negative effects on social welfare as well as consumer surplus. Counterfactual analyses using estimation results in the Korean online music service industry show that firms could have profitably reduced prices if the ad valorem rule had been applied instead, although they did not have an incentive to do so under the original combination rule.

• Journal of the Korean Operations Research and Management Science Society
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• v.14 no.2
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• pp.43-52
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• 1989

The present paper analyzes performance of a variant of rate-of-return regulation called the ex-post adjustment regulation put in effect in the Korean petroleum refinery sector. Unlike the traditional rate-of-return regulation on a monopoly, the regulation is first for the oligopolistic industry as a whole and second of the ex post nature. Under the regulation, at the end of each year, each firm is responsible to pay a certain portion of the excess of the total realized profits in the industry over the allowed profits. It is shown that if the excess profits are completely collected(including the interests), the social optimum can be realized. When only a portion of the excess profits can be collected, the regulation generally increases consumer surplus by making the firms more competitive. Each individual firm's production under the regulation depends on whether the firm's output is regarded as a strategic substitute or complement of other firms'output.

• Journal of Electrical Engineering and Technology
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• v.9 no.1
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• pp.1-5
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• 2014

When renewable sources are connected to the distribution network in the form of a distributed generators(DGs), the effect of intermittent output appears as voltage fluctuation. The surplus power at the consumer ends results in the reverse power flow to the distribution network. This reverse power flow causes several problems to the distribution network such as overvoltage. Application of the reactive power control equipment and power flow control by means of BTB inverter have been suggested as the general solutions to overcome the overvoltage, but they are not economically feasible since they require high cost devices. Herein, we suggest the feeder loop line switch control method to solve the problem.

• 한국신재생에너지학회:학술대회논문집
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• 2008.10a
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• pp.349-352
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• 2008

The most concerning issue in these days is the energy crisis by increasing threat of global warming and depletion of natural resources. In the situations, the Plug-in Hybrid Electric Vehicle (PHEV) is drawing attention from many countries for the next generation's car which has higher fuel efficiency and lower environmental impact. This paper presents simulation results about the limit capacity of central power-grid which doesn't have enough surplus electric power for charging PHEVs. Therefore, this paper also presents a smart charging system that can charge the PHEVs with a function of distributing demands of charging. The smart charging system is an agent facility between the government and consumer, which can recommend the best time to charge the battery of PHEVs by the lowest energy cost. This function of choosing time-slots is the technical system for the government which wants to control the consumption rate of electric power for PHEVs. Finally, this paper presents the economic feasibility of PHEVs from the two kinds of price system, midnight electric price and home electric price.

• Journal of Information Technology Applications and Management
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• v.16 no.3
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• pp.1-15
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• 2009

The paper analyzes a copyright owning firm's incentive to enforce its copyright in the presence of file-sharing networks. I devise a two-period model where a copyright owner sells two different versions of a creator's information good, and show that the firm's overall profits are enhanced by a strategy of differential inter-temporal enforcement of the copyright protection, compared to strategies of no enforcement or full enforcement in both periods. If the firm enforces no copyright protection in the first period, the low-valuation consumers may make and consume copies that are imperfect substitutes for the original information good. If there is a significant increase in the willingness-to-pay of some low-valuation consumers after they experience the information good, the firm can extract the increased consumer surplus by enforcing a positive level of copyright protection in the second period. Social welfare, however, is maximized in the case of no enforcement.

• Journal of Families and Better Life
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• v.28 no.2
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• pp.39-50
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• 2010

The aims of this study are to present the basic data of a school facilities complex and to analyze the necessity of a school facilities complex, school facilities characteristics and program characteristics. In the study, there can be found an analysis of the present conditions of the school facilities complex by literature research and the analysis of school facilities characteristics and program characteristics by case study. The results of this study are as follows: First, the elementary school facilities are mixed with the gym, swimming pool, culture center and convenient facility(parking lot). Second, the school facilities complex is not connected with the number of elementary school students. As the number of elementary school students decrease, it is possible to apply the generated surplus space of the school facilities to the community facility. Third, the school facilities complex is not connected to the reliance ratio of local finance. It is necessary for the central government to provide active financial and to build a financial support model. Fourth, most of the time, the entrance of the facility complex is divided from the entrance of the school facility. Fifth, the programs of many school facility complexes are composed of swimming and physical fitness programs.

• KDI Journal of Economic Policy
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• v.36 no.4
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• pp.71-102
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• 2014

This paper examines the possibility of 'parallel reimportation', the reimportation of goods originally produced in the country and exported to another country by profit-pursuing arbitrageurs. The chance of parallel reimportation implies unusually high level of market power of domestic enterprises, and promoting parallel reimportation can be an effective welfare-enhancing, competition-generating policy for the situation. Motivated by the finding, this paper proposes a methodology to measure the welfare effects of parallel reimportation. Specifically, this paper makes use of a structural empirical model to estimate the demand and supply system of Korean automobile market for performing a counterfactual experiment to measure the welfare effects of the parallel reimportation. The results indicates that parallel reimportation can enhance social welfare considerably by increasing consumer surplus and government tax revenue altogether, though it reduces the producer surplus.

• The Journal of Society for e-Business Studies
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• v.5 no.1
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• pp.135-158
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• 2000

In recent years, many retail businesses jumped on the Internet auction bandwagon and paid substantially high fees to learn and develop proper business strategies for this new environment. Unlike what most businesses in the real world presume, this research shows that discriminatory-price ascending-bid auctions in a digital economy might be not very beneficial for the sellers on the Internet, if sellers sell the identical digital products through both a typical posted-price market and an auction. Using an extensive technology infrastructure along with suitable incentives and rules for market agents, we found that a discriminatory-price ascending-bid auction, which is the most popular auction mechanism on the Internet, serves consumers better than it does the sellers or producers in the digital economy. That is, the average prices for digital goods in these auctions are substantially lower than the prices in a posted-price market. This shows that it is not so wise for sellers to jump on the bandwagon of Internet auctions, if there is a market place with posted-price mechanisms which sells comparable items, or if a seller does not have special advantages or strategies in this new market institution. Electronic market mechanisms provide powerful means of understanding and measuring consumer characteristics including willingness-to-pay and other demographics for sellers or producers. Many concern that sellers may extract the entire surplus from the market by using customization on the Internet, thus consumers will be worse off in this digital economy. We found that these sellers who can customize their products and prices fail to capture the whole consumers surplus and cannot exercise a monopoly. One major explanation for this phenomenon is that the competition among the sellers prohibits them from charging prices according to customers demand for each product, where switching from one seller to another is not so difficult for the customers, and reselling products among the buyers are prohibited.