• Journal of Korea Technology Innovation Society
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• v.1 no.2
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• pp.153-164
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• 1998

This study attempts to provide policy makers and other interested parties with policy implications throughout an economic analysis of software sector. Chapter 2 is designed to provide an overview of market characteristics in the software sector. Chapter 3 reviews an overview of the evolution stage of the software industry and the effects these trends have on firm strategies. Chapter 4 reviews the relationships between software economic characteristics and intellectual property rights. Some suggestions are offered in the conclusion, with special attention given to an examination of market characteristics, firm strategies, government policies, and some economic factors.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.64 no.5
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• pp.667-679
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• 2015

The bearer of the power sector's ETS compliance cost is power consumer for the following reasons. Firstly, power companies are constrained in establishing appropriate strategies to comply with ETS regulations due to the structural differences between the domestic power market and emission trading system. In other words, because power companies do not have a right to determine price and production of electricity, they have to compete with other companies under disadvantaged conditions in the emission trading market. Secondly, because ETS compliance cost is part of power production costs as it is also clearly written in the national greenhouse gas reduction road-map and the second energy supply plan, the cost should be included in power price following the power market operation rule. Thirdly, the most effective method to reduce carbon emissions in power sector is to reduce power demand, which is efficiently achieved through raising power price to a realistic level. Low power price in Korea is the major cause of rising power demand which is also the major cause of rising GHG emission. Therefore, power sector's ETS compliance cost should be included in power price to encourage power consumers' actions on reducing power consumption. Fourthly, when externality cost occurs in the process of delivering public services, usually beneficiary pay principle is applied to identify the cost bearer. Since electricity is one representative public good, the bearer of power sector's ETS compliance cost is power consumer.

• Journal of Digital Convergence
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• v.17 no.10
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• pp.177-186
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• 2019

The purpose of this study is to enhance the understanding of consumer experience and behavior of Internet of Things (IoT) services and to provide practical implications through investigating the impact of benefits-cost factors and network externalities on consumers' adoption intention of IoT services. An online survey was conducted on general consumers in their 20s to 60s who were aware of the IoT services and 328 data were collected. Using SPSS 24.0, frequency analysis, correlation analysis, factor analysis, and hierarchical regression analysis were conducted. As a result, the level of consumers' IoT service experience in various contexts was examined, and entertainment, informativeness, loss of humanity, compatibility, and complementarity were found to have a significant effect on consumers' adoption intention of IoT services. This study suggests that strengthening network externality effects by increasing compatibility and complementarity is important in promoting consumers' adoption of IoT services. In future studies, it is necessary to adopt specific Internet of Things services to verify the validity of the models developed in this study.

• Proceedings of the Korean Society of Computer Information Conference
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• 2014.07a
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• pp.97-98
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• 2014

Lots of investment projects of new development and redevelopment for information systems have been not taken care of in the field of administration and evaluation, for these information systems projects have unique characteristics such as technology sensitiveness, network effectiveness, embeddedness, and externality. In fact, quantitative and qualitative evaluation of investments in information systems projects are not sufficient. It is critically important to generally evaluate benefits of development or operation cost, urgency, external effects, and so on. In addition, the efficient monitoring and effective analysis of information systems are surely needed for beneficient results of investment in information systems. We propose an economics evaluation model for information systems projects.

• Journal of Technology Innovation
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• v.13 no.1
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• pp.113-139
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• 2005

The purpose of this study is to analyse the diffusion process of personal computer (PC) in Korea during the 1990's. To achieve the goal, five research steps have been done such as the literature survey of diffusion theory, set-up of theoretic equilibrium model of supply and demand, derivation of an equilibrium path using Hamiltonian, and empirical analysis. The empirical analysis has been performed based on that equilibrium path. The results can be summarized as follows : First, technological attribute of diffusing product influences the diffusion speed of Product. It has been proven that the size of the network has a significant effect on the diffusion of PC in empirical study Second, supply factors have an important role in the diffusion process. According to the empirical analysis, decreasing cost of production as a result of technological advance promotes the speed of diffusion. This point seems to be manifest theoretically, but existing empirical models have not included supply factors explicitly, Third, it has been found out that expectation of decreasing cost would influence the speed of diffusion negatively as expected ex ante. Theoretically this result is supported by arbitrage condition of purchasing timing.

• Journal of Korean Society of Transportation
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• v.28 no.1
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• pp.63-74
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• 2010

Recently, there has been increasing demand from academic society in Korea for the improvement of current traffic congestion cost estimation methods. The purpose of this study is to suggest a better way to estimate congestion cost followed by in-depth review regarding traffic congestion. The key improvements proposed in this study include: 1) adding social externality to congestion cost, 2) integrating the green house and environmental pollution impacts with congestion costs, 3) taking non-recurrent traffic congestion costs into account for the assessment, 4) revising the criteria to determining the level of traffic congestion speed, and 5) deciding how to limit congestion measurement period. It is found meaningful that the improvements, notwithstanding difficulties in their real case application, provide invaluable insights in our efforts to change the meaning of congestion cost in an era of sustainable growth.

• Environmental and Resource Economics Review
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• v.14 no.4
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• pp.923-941
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• 2005

Odor problem of livestock operation is important issue in a local community. I quantified the property price impact of 199 livestock operations for 3,355 housing sales in the U.S (Colorado). Spatial hedonic model was adopted to deal with spatial autocorrelation in housing market. Small beef and dairy operations, which are the traditional agricultural sector, seem to create a positive rural lifestyle amenity effect. However, the impact of livestock operation on rural residential sales turns to negative if the operation is over a certain size and species. Large hog and sheep operation seems to bring fatal economic loss from the local community perspective if it close to residential area. Livestock odor is one of the negative externality, the results provide the potential social cost of the livestock sector in the region. Policy makers may incorporate this social cost in the regional planning to minimize the social and maximize the development effect. Therefore, local officials and private individuals should carefully consider the location and characteristics of new residential properties and livestock operations alike.

• The Transactions of the Korean Institute of Electrical Engineers P
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• v.61 no.2
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• pp.74-81
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• 2012

The purpose of this study provides the theoretical model for protecting the economic and social loss from the current alternative fuel vehicle which is developed without compatibility and senseless one's own through verifying the statistical significant by method of measuring analysis. The market scale of alternative fuel vehicle depends on customer's and station's expectation about the number of potential vehicle users. It is very difficult for vehicle manufacturer to make a decision on the standard alternative fuel vehicle as it might reduce profit and market share. Accordingly, the development of alternative fuel vehicle should have manufacturer confident on the potential profit in the future. Moreover, if we decide to use the non-standard fuel after we started to use the standard fuel, it would take a huge cost comparing with starting to use the standard fuel only. As a result, once one of companies starts to provide the non-standard fuel service, it is getting more difficult to use the standard fuel going forward. Consequently, we may review the possibility of choice on the standard fuel before the vehicle manufacturer starts service with non-standard fuel.

• ETRI Journal
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• v.27 no.2
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• pp.206-218
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• 2005

We measure and compare externalities of IT and R&D capital stocks in different Korean industry sectors using inter-industry input-output tables of 1985, 1990, 1995 and 2000. We also compute the multiplier effects that relate to the directions of future economic effects. The key findings are as follows. First, we observed continuous capital deepening in all nine industries over the period of 1985 to 2000. Second, the backward multipliers of IT capital were the highest in the manufacturing industry. As for inter-industry externalities, the indirect backward multipliers, which exclude intra-industry backward multiplier effects within the industry, were also the highest in the manufacturing industry. Third, the forward multiplier effects of IT capital stock were the most substantial in the construction industry during the 1980s and in the manufacturing industry thereafter. Finally, using the transition multiplier matrix reflecting the backward effects of the two capitals in the past, the economic backward effects, especially the external economic effects, are predicted to increase through 2010 among all industries. The above findings suggest that, in order to maximize the forward and backward effects of the ever-increasing IT capital, we need to formulate an industry policy reducing the cost of capital accumulation in the manufacturing industry through improvement in productivity of the IT industry.

• Journal of the Korean Operations Research and Management Science Society
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• v.38 no.3
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• pp.51-70
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• 2013

This paper develops a model to predict the adoption and level of usage of network technology in a two-level supply chain with buyer-supplier relationships. A firm's adoption of a new technology depends not only on its own beliefs of the new technology's costs and benefits, but also on the adoption decisions of other firms in the supply chain. A model first analyzes an individual supplier's decision about a new technology adoption considering with multiple suppliers and buyers. Individual suppliers' decisions are aggregated with a population model to project how new technology diffuses across the supply chain and examine the pattern of diffusion process. This study found that as more firms adopt in initial periods, the total amount of information to the potential adopters in the population increases, and then the number of firms persuaded by the information increases as the process moves up the distribution of adoption process. We consider three factors influencing the diffusion speed of the new technology in a supply chain network : mean benefits, cost sharing, and information provision. This study examines how such factors affect the reduction of threshold levels, which implies that reductions in threshold levels have an aggregate effect by accelerating the rate of adoption. In particular, we explore relationship factors available in practice in a buyer-supplier relationship and numerically examines how these relationship factors contribute to increase the diffusion speed of the technology in a two-level supply chain.