• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.1
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• pp.7-15
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• 2020

It is a general phenomenon for manufacturers to provide vertically differentiated product line for more profit through improved market coverage. For such manufacturers, the compatibility between vertically differentiated products is an important decision issue. Some manufacturers provide full compatibility between high and low version products, whereas some provide only downward compatibility for the purpose of recommending high version product. In this study, the two representative compatibility strategies, full or downward, between vertically differentiated products produced by a single manufacturer are analyzed, especially under network externality and in the viewpoint of profit maximization. To do this we used a market model which captures the basic essence of vertical differentiation and network externality. Based on the proposed market model, the profit maximizing solutions are derived and numerically analyzed. The results can be summarized as follows : (1) Regardless of compatibility strategy, under network externality, vertical differentiation is always advantageous in terms of profit. (2) The full compatibility strategy is shown to be the most advantageous in terms of profit. In addition, it is necessary to make quality difference between differentiated products as wide as possible to maximize profit. (3) To gradually drive low version product out of the market and shift the weight pendulum of market to high version product, it is shown that the downward compatibility strategy is essential. Unlike intuition, however, it is also shown that in order to drive low version product out of market, it is necessary to raise the quality of the low version product rather than to lower it.

• The Journal of the Acoustical Society of Korea
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• v.14 no.2E
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• pp.91-97
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• 1995

This paper describes the implementation of a multi-channel audio codec for HETV. This codec has the features of the 3/2-stereo plus low frequency enhancement, downward compatibility with the smaller number of channels, backward compatibility with the existing 2/0-stereo system(MPEG-1 audio), and multilingual capability. The encoder of this codec consists of 6-channel analog audio input part with the sampling rate of 48 kHz, 4-channel digital audio input part and three TMS320C40 /DSPs. The encoder implements multi-channel audio compression using a human perceptual psychoacoustic model, and has the bit rate reduction to 384 kbit/s without impairment of subjective quality. The decoder consists of 6-channel analog audio output part, 4-channel digital audio output part, and two TMS320C40 DSPs for a decoding procedure. The decoder analyzes the bit stream received with bit rate of 384 kbit/s from the encoder and reproduces the multi-channel audio signals for analog and digital outputs. The multi-processing of this audio codec using multiple DSPs is ensured by high speed transfer of date between DSPs through coordinating communication port activities with DMA coprocessors. Finally, some technical considerations are suggested to realize the problem of real-time operation, which are found out through the implementation of this codec using the MPEG-2 layer II sudio coding algorithm and the use of the hardware architecture with commercial multiple DSPs.