• Journal of Distribution Science
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• v.12 no.10
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• pp.123-128
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• 2014

Purpose - The purpose of the study is to reexamine the price fairness as practiced by low cost airlines, as a consumer has to experience such inconveniences as inferior airport transportation, extra fees on in-flight meals, and non-negotiable seats, and consumers evaluate such experiences keeping in mind their total costs. This evaluation includes price fairness and allows a reasonable and overall consideration of factors of low cost airlines. It tries to set up a measurement of the indicators consumers' perceptions of price fairness academically as it adapts price fairness to airline services which are renowned for price volatility. Research design, data, and methodology - The research proposes an alternative pricing strategy for the long term profit of low cost airlines after going over conflicts between the traditional theory of consumers' price perception mechanism and flexible fair policy of low cost airlines. It was meaningful when it relates to the early stage of the business, while it enhances the risks relating to the long term survival of low cost airlines. In addition, it is significant as it highlights the negative influences on consumers' perceptions of price fairness, as low cost airlines run on extremely low cost perspectives. Results - The results of the research provide insight into four perspectives, as consumers' perceptions of price fairness are influenced by the frequency and range of price changes and services. The first perspective is that it would lead to positive price evaluation when a low cost airline cuts prices frequently with little changes than one big change. It also would lead to the same result when it comes to necessary services. The second perspective is that one big increase of price would rather undermine the negative aspects of price changes than those of several smaller ones. The third perspective is that additional services would be good to consumers' perceptions of price fairness as compared to discount benefits with respect to the cost. Finally, a low cost airline should consider that consumers will change airlines or defer their flight schedule if the flight fares increase beyond their limits. Conclusions - Low cost airlines should reconsider their pricing policies for services that were provided free earlier. A consumer would not like discount benefits when made to pay for services that were, for long, free of charge. If a low cost airline can provide services with no charge, it should improve volumes if the costs are standardized and, moreover, should consider the charging fees. Alternatively, a consumer can choose between services and fair discount. Low cost airlines are implementing sales promotion strategies, as the competition is more intense than it used to be. In these days, they should regard services over sales promotion, as consumers may prefer to spend money on good premium services. Some differentiation in services could create a good market position for the airlines and, hence, good financial performance.

• The Journal of the Korea Contents Association
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• v.19 no.1
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• pp.304-315
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• 2019

The purpose of this study is to identify factors affecting the purchase of Fair Trade products and to segment consumer which were typed according to the fair trade consumption competency, attitude and ethical consciousness of the University students. As a result, there are 4 type consumers, general type, indifferent type, individualism type, and fair trade practice type. Factors that directly affect the purchase experience of Fair Trade products are knowledge, willingness and interest in fair trade. In the end, education should be provided through fair education and ethical consumption through systematic education, and outside of school, social effort should be accompanied by the media and various contents to enable college students to promote their knowledge and interest in fair trade. In order to activate the fair trade market, it will be necessary to improve the quality to secure the market value as a commodity and to increase the price acceptance of the consumer.

• Journal of Korea Fair Competition Federation
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• no.109
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• pp.2-45
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• 2004

사업자간의 협정이 법률상 명백하게 카르텔에 해당하는 경우에는 이를 엄격하게 규제하여야 할 것이나 이의 법률상 요건이 성숙되지 않은 경우에 이를 규제하는 것은 규제가 오히려 실패할 가능성이 있다는 점에서 카르텔의 성립요건 중 확인할 사항은 충분하게 확인하여야 할 것이고 법리에 보다 충실하게 적용하여 규제하여야 할 것이다. 또한 공모를 직접 입증할 수 없는 경우에도 단순하게 당해 시장에서의 공동행위 참여자의 시장점유율에 의한 경쟁제한성과 참여자 상호간의 경쟁제한성만의 요건 충족으로 위법성을 인정하는 것이 종래의 위법성 판단방법이었으나 시장에 따라 다양한 요소를 고려하는 것이 필요하며, 경제학적인 요소를 계량화한 법적 판단기준을 확립하는 것이 필요하다.

• Journal of Internet Computing and Services
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• v.13 no.1
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• pp.27-36
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• 2012

This study aims to find out the effectiveness of regulation of promotional gifts and exemption of charges by analyzing the judgement criterion of illegality and the corrective action taken by regulatory agencies and suggests effective way of regulation. The results show that recently the differences of price-cut is getting bigger. In addition, Fair Trade Commission has considered discounts as unfair predatory price only if price is below the cost. But in the telecommunication business law enacted by Korea Communications Commission, 'expected profits per subscriber' has been applied as a key criterion. KCC's criterion is based not on the expected profit of individual service provider but on the averaged profit of services providers. It doesn't consider differences of service quality and the cost structure between dominant firm and late comers. Prohibition act of user discrimination result in the increase of subscriber and operating profits of late comers but this is not direct purpose of regulation. It can be desirable in the aspect of fair competition but since it may reduce consumer welfare, the criterion needs to be reconsidered.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2014.05a
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• pp.50-51
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• 2014

Although price of construction equipment affects overall cost of a construction projects, the cycle of updating them presented in the Poom-Saem in Korea is more than six years. Recently there is a demand of using the 'Standard Market Price of Construction Equipment', published by the ministry of Security and Public Administration, for estimating equipment operating and ownership cost. It is urgent to introduce an advanced system for updating the prices which can timely reflect market changes.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.14 no.4
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• pp.1582-1588
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• 2013

This study investigated whether artists' education level, college of graduation, and gender have any influences on artists' premium which leads to higher sales possibility and art price using Art Fair Market data. We found that artists' education level do not have statistically significant effects on either sales possibility or art price. But, artists' college of graduation which was measured by artists' undergraduate school level(high or low) has significant effects on both sales possibility and art price. Artists' gender also has a significant effect on art price, although it does not have any significant effect on sales possibility. These results imply that artists' educational level or degree does not exert significant impacts on artists' premium, while the level of college that artists attended indeed has a significant effect on artists' premium. They also imply that gender plays a role in Korean art market.

• Journal of the Korean Society for Industrial and Applied Mathematics
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• v.12 no.4
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• pp.271-287
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• 2008

This paper deals with American call and put options. Determining the fair price and the free boundary of an American option is a very difficult problem since they depends on each other. This paper presents numerical algorithms of finite element method based on the three-level scheme to compute both the price and the free boundary. One algorithm is designed for American call options and the other one for American put options. These algorithms are formulated on the system of the Jamshidian equation for the option price and the free boundary. Here, the Jamshidian equation is of a kind of the nonhomogeneous Black-Scholes equations. We prove the existence and uniqueness of the numerical solution by the Lax-Milgram lemma and carried out extensive numerical experiments to compare with various methods.

• Proceedings of the KIEE Conference
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• summer
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• pp.701-703
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• 2004

Although the electricity market structure worldwide may be different in kinds, there generally exists long-term forward market and short-term spot market. Particularly, the bilateral contract in long-term forward market fixes the price between a genco and a customer so that the customer can avoid risks due to price-spike in spot market. The genco also can make an efficient risk-hedge strategy through this bilateral contract. In this paper, we propose a new mechanism for evaluating the optimal bilateral contract price using game theory. This mechanism makes a customer reveal his/her own willingness to purchase electricity so that a fair bilateral contract price can be derived.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.19 no.3
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• pp.83-95
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• 2011

This research is the ever first trial to demonstrate how consumer perceives price fairness of airfare. That, I did research on airline's flexible price changes and its effects on consumer's perceiving price fairness, proved the causality between before and after of airline service experience and examined the interest in moderating role of airline service. In addition to this, you also can see a markdown can have effects on consumer's perceiving price fairness. The main results are: Perceived price fairness before experience airline service had positive effects on perceiving price as fair. Since the direction of perceived price fairness coincides with in the context of the consumer's experience, so the preliminarily evaluated fairness had positive effects on the post fairness acceptance. With the second result, when you see consumer's perceived price fairness beforehand service experience has effects on post service experience in perceiving price fairness, you see the activation of a markdown, in-flight service, after-flight service as moderating roles as they strengthen the tie between the two perception modes and exhibited interaction with the price fairness beforehand service experience the independent variable. As the last one, a markdown of airfare had positive influence on consumer in perceiving price fairness. So, even if he/she becomes aware of overcharging, he/she will not pursue price being unfair. With these results, you can tell a markdown of airline service could have positive influence on both new and established consumers in the aspect of perceiving price fairness.

• Journal of Distribution Science
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• v.17 no.4
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• pp.5-16
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• 2019

Purpose - This study examines whether price cartel firms perform downward earnings management to avoid or minimize penalty surcharges levied by the Korea Fair Trade Commission and analyzes such earnings management in distribution industry. Research design, data, and methodology - We use 247 firms from 64 price cartel cases in the period of 2011-2016, and collect data from 3 years before to 3 years after the start of price cartel. Earnings management is measured by discretionary accruals. Three discretionary accrual estimation models are employed; modified Jones model, ROA adjusted modified Jones model and CFO-adjusted modified Jones model. For pre- and post-cartel periods, one year, two year, and three year windows are used. Additional empirical analyses are performed for distribution industry sub-sample of 25 cartel firms. Result - The regression results show that cartel firms' discretionary accruals are significantly lower in the period after the start of price cartel than before. And discretionary accruals are lower in cartel firms than in non-cartel firms during the cartel period. Cartel firms in distribution industry also show the earnings management similar to those in other industries. Conclusions - These two findings lead to the conjecture that managers of cartel firms manage their earnings downward. This behavior is indistinguishable between firms in distribution industry and other industries.