• KIEE International Transactions on Power Engineering
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• 제5A권4호
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• pp.403-411
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• 2005

At present, the Cournot model is one of the most commonly used theories to analyze the gaming situation in an oligopoly type market. However, several problems exist in the successful application of this model to the electricity market. The representative one is obtaining the inverse demand curve able to be induced from the relationship between market price and demand response. In the Cournot model, each player offers their generation quantity to obtain maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect the real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears over the long-term through statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as the trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium.

• 대한산업공학회지
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• 제13권2호
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• pp.65-77
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• 1987

Congestion occurs whenever users interfere with each other, while competing for scarce resources. In a congested market, such as a telecommunication service market, users of telecommunication services incur costs in using the service in addition to the price. The user's own time costs involved in learning to use the service, waiting for the service, and making use of the service are typically greater than the price of telecommunication services. A market equilibrium analysis is performed in which a method for user demand aggregation is developed. The effects of price changes on user demands and market demands for congested services are examined. It is found that total market demands may increase as the price for less-congested services increase under certain demand conditions. This suggests that a nonuniform pricing scheme for a congested service may improve the utilization of the congested system. The sign of price cross-elasticity for congested services is show to vary with demand conditions. A possible complementary property of congested services is found and the implication of such a property is discussed. It is argued that such a complementary property may lead to a cross subsidy in a market with congestion. Finally, comparisons between uniform pricing and nonuniform pricing policies are made. A specific numerical example is given to show that a nonuniform pricing policy may be Pareto superior to a uniform pricing policy.

• KIEE International Transactions on Power Engineering
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• 제5A권2호
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• pp.199-203
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• 2005

This paper proposes the level of price cap in the TWBP(Two- Way Bidding Pool) market in Korea for which the draft of market design has been prepared by KPX. Max - GMCP(Maximum Generation Market Clearing Price) and APC(Administered Price Cap) would be separately applied as individual price caps for a normal period and a Price Capping period in TWBP. The level of price cap is determined for inducing optimal investment in the Korean Electricity Market considering the 'electricity resource baseline plan' published by the Korean government in 2002 for maintaining government-leading resource planning in Korea. In this regard, Max - GMCP is calculated from the equilibrium condition of investment based on reliability standard and fixed cost of the peaking plant. For verifying the propriety of the proposed price cap, this paper compares the proposed value with the estimated VoLL(Value of Lost Load) based on Korea's GDP(Gross Domestic Product).

• Geosystem Engineering
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• 제21권6호
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• pp.297-308
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• 2018

In this paper, we investigate the differences between LNG price of South Korea and Japan. Although S. Korean and Japanese LNG markets have similar structures, there are some differences in the price formation. From DCC-MGARCH, we confirm that Japan LNG price have less persistence of disturbance on time than S. Korean LNG price. The conditional correlation also shows linkage effects between LNG prices and impacts of S-curve and DS-curve. Moreover, ARDL estimation result shows that there is co-integration in all models and that impacts of Fukushima accident and LNG volumes are responsible for the increase in Japanese LNG price. Also, adjustment speed of error correction term shows that Japan's deviation from long-run equilibrium disappears faster than S. Korea does, indicating relatively strong Japanese linkage between LNG price and oil price.

• 경영과학
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• 제32권1호
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• pp.83-100
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• 2015

We analyze a duopoly competition when two firms face input cost increases. The objective of this study is to determine the firms' optimal strategy between a price increase and downsizing under conditions of a spatially differentiated market and consumers' diminishing utility on the product size. We develop a theoretical model of two competing firms offering homogenous products using the standard Hotelling model to determine how firms' optimal strategies change when facing input cost increases. In this paper, there are two types of duopoly competitions: symmetric and asymmetric. In the symmetric case, the two firms have the same marginal cost and are producing and selling identical products. In the asymmetric case, the two firms have different marginal costs. The results show that the optimal strategy decision depends on the size of the input cost increase and the cost differences between the two firms. We find that when two firms are asymmetric (i.e., they have different marginal costs), the two firms might choose asymmetric pairs of strategies in equilibrium under certain conditions. When the cost differences between the two firms are sufficiently large and the cost increase is sufficiently small, the cost leader chooses price increase, and the cost-disadvantaged firm chooses downsizing in equilibrium. This asymmetric strategy reduces price competition between two firms, and consumers are better off. When the cost differences between the two firms are sufficiently large, downsizing is the dominant strategy for the cost-disadvantaged firm. The cost-disadvantaged firm finds it more profitable to reduce the product size than to increase its price to reduce price competition, because consumers prefer downsizing to price increases. This paper might be a good starting point for further analytical research in this area.

• 한국융합학회논문지
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• 제10권1호
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• pp.205-214
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• 2019

우리나라 정부 당국은 주로 최저가낙찰제도를 이용하여 조달을 시행해왔으나, 과거 일정 시기 동안은 제한적 평균가 낙찰제 경매방식(일명 부찰제)을 이용하여 시설공사부문 조달을 실시했다. 부찰제란 각 입찰자들이 서로 모르게 공급가격을 적어 내면 그 가격을 평균하여 그 평균값에 가장 가까우면서 평균값보다는 낮은 공급가격을 부른 사람이 승자가 되며, 그가 부른 가격에서 낙찰가가 결정되는 제도이다. 본 논문은 제한적 평균가낙찰제 경매방식을 자원배분기구설계(mechanism design)의 관점에서 정형화하고, 고려할 문제를 제시한다. 나아가 ?명의 일반적 상황 하에서 사적 정보를 가지고 있는 입찰자들의 전략을 일양 분포 가정과 선형전략의 가정을 도입하여 구하고, 이를 통해 부찰제 경매방식의 균형을 제시한다. 또한 이러한 균형전략을 최저가낙찰제도와 비교함으로써 우리나라에서 자주 사용되는 두 제도의 효율성과 기대수입의 측면을 살펴본다. 끝으로 부찰제를 실시하는 경매인(정부)의 현실적 목적성이 어느 정도 달성되고 있는가를 비판적으로 고찰한다.

• 농업과학연구
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• 제50권4호
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• pp.629-643
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• 2023

The purpose of this study was to examine the effectiveness and efficiency of a policy by comparing and analyzing the impact of the rice market isolation system and production adjustment system (strategic crops direct payment system that induces the cultivation of other crops instead of rice) on rice supply, rice price, and government's financial expenditure. To achieve this purpose, a rice supply and demand forecasting and policy simulation model was developed in this study using a partial equilibrium model limited to a single item (rice), a dynamic equation model system, and a structural equation system that reflects the casual relationship between variables with economic theory. The rice policy analysis model used a recursive model and not a simultaneous equation model. The policy is distinct from that of previous studies, in which changes in government's policy affected the price of rice during harvest and the lean season before the next harvest, and price changes affected the supply and demand of rice according to the modeling, that is, a more specific policy effect analysis. The analysis showed that the market isolation system increased government's financial expenditure compared to the production adjustment system, suggesting low policy financial efficiency, low policy effectiveness on target, and increased harvest price. In particular, the market isolation system temporarily increased the price during harvest season but decreased the price during the lean season due to an increase in ending stock caused by increased production and government stock. Therefore, a decrease in price during the lean season may decrease annual farm-gate prices, and the reverse seasonal amplitude is expected to intensify.

• 대한전기학회:학술대회논문집
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• 대한전기학회 2005년도 추계학술대회 논문집 전력기술부문
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• pp.168-170
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• 2005

At present Cournot model is one of the most commonly used theories to analyze the gaming situation in oligopoly market. But there exist several problems to apply this model to electricity market. The representative one is to obtain the inverse demand curve able to be induced from the relationship between market price and demand response. In Cournot model, each player offers their generation quantity to accomplish maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears on the long-term basis through the statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium

• 자원ㆍ환경경제연구
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• 제23권4호
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• pp.553-581
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• 2014

This paper analyzes competition among service stations in the Korean gasoline market. We consider spatial differentiation as a source of product differentiation as well as the characteristics of the stations and vertical contracts between refiners and retailers as factors causing changes in equilibrium prices in the Korean gasoline retail market. The effect of the government's price disclosure policy on the retail market competition is also analyzed. Moran's I test indicates that the prices of neighboring gas stations are spatially correlated in the market. It is also found that gasoline prices for vertically integrated stations are much lower than those for independent stations. In addition, unbranded stations charge lower prices than branded stations but also induce branded stations to price more competitively. Meanwhile, the government's price disclosure policy did intensify price competition in the retail gasoline market. It is inferred that the price disclosure policy contributed to retailers gaining more bargain power in price negotiation with refiners, causing an eventual increase in retail prices.

• 자원ㆍ환경경제연구
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• 제16권3호
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• pp.653-682
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• 2007

In this study, multi-sectoral partial equilibrium and computable general equilibrium models of Taiwan are used to investigate the direct and indirect effects of energy price increases on overall economies and agro-food sector in Taiwan. The results suggest that agricultural prices, production cost would increase between 0.27% to 1.88%, and a reduction in GDP around 0.39% to 0.54 %. The negative impact on livestock sector is slightly higher than that on the crop sector. Negative impacts are also observed in the employment and wages. The rising oil price has the potential to discourage production of energy-intensive activity because of the possibility of substitution and adaptations. The growth rate of real GDP will shrink by 0.64% to 1.06% and CPI will increase by 1.17% to 1,95%. Both the agriculture and non-agricultural sector also respond by raising output prices by 0.80% to 1.33%. The rising international oil price has urged the government to take policy actions like using alternative fuels such as biodiesel, bioethanol, and adopting measures to cut down on energy consumptions mainly in transportation sectors in response to public concern over economic shocks.