• Journal of the Chungcheong Mathematical Society
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• v.28 no.1
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• pp.89-95
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• 2015

In this paper we investigate the pricing of European contingent claims under regime switching. We use the Mellin transform to derive an analytic form of the valuation of contingent claims.

• Journal of the HCI Society of Korea
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• v.11 no.1
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• pp.11-19
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• 2016

This study aimed to assess the economic value of the UX design and applied contingent valuation method (CVM) to the three smartphone screen unlock interface types: touch, fingerprint, and iris recognition. The contingent valuation method was chosen from various economic valuation approaches because the interface components such as the screen unlock are important user experience values but non-market goods which are not traded independently. Using the double-bounded dichotomous choice approach of the contingent valuation method, the survey results of the logit model showed that the economic value of touch unlock interface was 529 won, fingerprint was 4,214 won, and iris recognition was 1,316 won. That is, the fingerprint interface had the highest economic value, followed by iris recognition and touch interface. The main contribution of this research is that we examined a method for economic valuation of the UX design and generated systematic and credible results.

• Journal of the Korean Society for information Management
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• v.29 no.2
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• pp.173-191
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• 2012

CVM (Contingent Valuation Method) has been most widely used for valuation of public libraries. However, there have been a debate on the validity of CVM in that many kind of biases could exist due to its hypothetical nature, the type of questions, payment vehicles and so on. To ensure the validity and reliability of public library valuation, this study analyzed the effects of payment vehicles to valuation using CVM. Three types of payment vehicle, tax, donation, fee were used to pay in hypothetical market. As a result, these payment vehicles estimated the different WTP and donation produced 14,542 won, which is the highest WTP.

• Environmental and Resource Economics Review
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• v.10 no.4
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• pp.515-545
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• 2001

This paper introduces the least absolute deviations estimation of the contingent valuation model, which corresponds to the semi-parametric estimation of discrete choice models by Manski (1975, 1985) and Lee (1992). The least absolute deviations estimation is more robust to mis-specified distributional assumptions in the estimation of the contingent valuation model, compared to the maximum likelihood estimation. The full identification and strong consistency of the estimation are proved and its application to different formats of contingent valuation survey data is discussed. Simulation studies are designed to evaluate its operational characteristics including computational strategies, small sample properties and the efficiency gain of a follow-up question. The bias and efficiency of least absolute deviations and maximum likelihood estimation are compared in the presence of heteroskedasticity.

• Journal of Korean Society of Rural Planning
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• v.10 no.3 s.24
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• pp.33-39
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• 2004

The purpose of this study is to estimate the economic valuation of rural waste disposal facilities that are one of the rural environmental improvement projects using contingent valuation method(CVM) in Gyongsangbuk-do, Korea. This study surveyed 1,089 households about the WTP(Willing To Pay) of rural waste disposal facilities policy in Gyongsangbuk-do and it was composed with city level and town level. The overall results show that the respondents well accepted the contingent market and would be willing to pay(WTP) a significant amount for the proposed policy program of rural waste disposal facilities. The values estimated for the rural waste disposal facilities are as follows : 1. The maximum WTP was \10,466 in City level and it was \9,104 in town level by per year. 2. The mean WTP was \9,257 in City revel and it was \8,636 in town lever by per year. 3. Total economic benefits for the household amounted to \7,989,046,270 per year. This result can be used to useful base data fir the policy programs of rural waste disposal facilities.

• Journal of Korea Technology Innovation Society
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• v.3 no.1
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• pp.113-126
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• 2000

The purpose of this paper is to introduce and test an extension of dichotomous choice contingent valuation(DC-CV) methods of pre-test-market evaluation using the specific case of a cable telev-ision service. Specifically we used a double-bounded DC-CV approach. On the whole respondents accepted the contingent market and were willing to contribute a significant amount on average. This willingness varies according to individual characteristics and concerns about the service. It is concluded that the methods are potentially a useful tool for decision-makers in measuring the po-tential demand for a new cable television service and considering the provision of the service.

• Journal of the Architectural Institute of Korea Planning & Design
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• v.34 no.5
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• pp.3-10
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• 2018

The purpose of this study is to estimate the attractiveness value according to the preference level on architectural aesthetic. This research starts from the concept that aesthetic is phenomenon and from the viewpoint of 'attraction value' which affects goods. Interactive internet surveys were conducted for 500 citizens of Seoul metropolitan city who are potential users of the Nodle Islet Cultural Center. Based on the scenarios and questionnaires with fuzzy models, we have examined the evaluation of architectural aesthetic and monetary willing-to-payment, and estimated the economic value by preference level of architectural aesthetic through linear regression analysis. The main results of the study are as follows: First, the economic value of the Nodle Islet Cultural Center was estimated at ?15,683.43/person. Residents of Seoul metropolitan city were willing to accept the increase in the above-mentioned amount of the facility fares when their preferred works (average 86.81 points) were constructed. (P <0/05) Second, it is confirmed that the economic value increases dramatically as the preference level of architectural aesthetic increases. Third, it is presumed that the infinite valuation of architectural aesthetic and the problem of free riding coexist in the estimation of economic valuation of architectural aesthetic for public buildings. Fourth, by mixing the fuzzy logic with contingent valuation method, starting point bias and no response biases that happened in contingent valuation could be disappeared. bias elimination must be considered seriously because another bias could be happened in full process of the research. The results of this study will serve as a basis for spreading architectural aesthetic value-oriented research from the vague and obscure aesthetic-centered discussion on the existing architectural aesthetic. In addition, it will be an opportunity to draw institutional application and utilization strategy of architectural aesthetic through architectural aesthetic value research.

• Environmental Engineering Research
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• v.13 no.1
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• pp.41-48
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• 2008

The valuation of biodiversity is a fundamental step in conservation. The useful framework for analysing the economic value of biological resources is that of total economic value (TEV) and TEV comprises both use and non-use values, the former related to an actual use made of the resource, the latter to a willingness to pay for the resource independently of any use made of it. There are several valuation approacher in environmental economics literature. However, stated preference approach should be introduced for valuation of biodiversity because it can estimate non-use value as well as use value. Contingent Valuation and Conjoint Analysis are representative methods in stated preference and Conjoint Analysis can be more useful for valuation of biodiversity. Futhermore, the combination of ecology and economics to assess biodiversity leads to an integrated framework. Thus, interdisciplinary work is required, involving both economists and ecologists transferring elements or even theories and models from one discipline to another and transforming them for their specific, mutually consistent purpose.

• Journal of Korean Society of Coastal and Ocean Engineers
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• v.24 no.6
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• pp.373-380
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• 2012

The sandy beach along the east coast of Korea offers beautiful scenery with high-quality sand for leisure, and is also famous for the white-sand and pine-tree which is an important scenic resource. Furthermore, the sandy beach helps to maintain natural environment of the costal area and functionates as a disaster prevention system against high waves. There are two major value evaluation methods, Travel Cost Method and Contingent Valuation Method, to assess the value of coastal sandy beach. Contingent Valuation Method is considered to be more appropriate for simultaneous evaluation on the usefulness and the uselessness of the beach. But in order to apply Contingent Valuation Method to coastal sandy beach evaluation, close examination and investigation on the potential bias, such as on questionnaires, surveys and replies, are required. In this study, the characteristic of primary amenity of sandy beach users is investigated, in prior to evaluating the usefulness and the uselessness of the beach measured by contingent valuation method. The characteristic of amenity on major sandy beaches on the east coast of Korea is studied and compared by diverse value evaluation methods.

• Journal of Korean Society of Water and Wastewater
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• v.28 no.5
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• pp.561-571
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• 2014

The paper is to estimate willingness-to-pay (WTP) for tap water quality improvement in Busan, using parametric approach in contingent valuation method(CVM). For parametric approach linear logit model and log logit model are employed in double-bounded dichotomous choice format of CVM. For the reliability and the validity of contingent valuation method a survey was conducted for 665 respondents, who were sampled by stratified random sampling method, by personal interview method. The result of mean WTP for the tap water quality improvement in Busan was estimated to be 3,687 won and 3,660 won per month per household, while median WTP being 1,884 won and 1,892 won per month per household, respectively by linear logit model and log logit model. Provided that our sample is broadly representative of the Busan's population, an estimate of the annual aggregated benefit of residential water improvement for all Busan households is approximately 29.7 billion won to 29.8 billion won based on median WTP.