• The Journal of Fisheries Business Administration
• /
• v.18 no.1
• /
• pp.37-57
• /
• 1987

This article discussed the characteristics of several Pareto-optimal incentive contracts between owner and labor, more specifically, four situations: reporting output jointly observable by labor ana owner; reporting both output and effort; incorporating other endogenous elements (like capital) that affect the production process and Pareto-optimal fee schedules; and ascertaining the effects of private pre-decision information private- decision information, and per-contact informational asymmetries. Also presented were several extensions of the basic contractual model, and the different components of agency costs associated with labor-owner contractual relations. In a single-period model, the agency problem exists because the uncertainty prevents the owner from using the cash flow to determine unambiguously the labor's action. Holmstrom(1979) suggests that "when the same situation repeats itself over time, the effects of uncertainty tend to be reduced and dystunctional behavior is more accurately revealed, thus alleviating the problem of moral hazard. " Under these conditions, if the labor selects the first-best level of effect in each period, the cash flow will be independent and identically distributed over time. As the number of periods increases, the variance of the labows average output, if he selects the first-best level of effort in each period, gets smaller. Note that for this diversification effect to occur, it is necessary that the owner evaluate the labor's effort over the entire history of his employment, rather than evaluate each period's performance separately. Radner(1980) and Rubinstein and Yaari(1980) consider the extreme case in which there are an infinite number of observations. They show that the owner can eventually detect and systematic shirking on the part of the labor by comparing the labor's average output with what would be expected if the labor had been selecting the first-best level of effort in each period. In a dynamic model with incentive problems we have demonstrated that the labor's second-period compensation will depend on his first-period performance. This allows the owner to diversify away some of the uncertainty surrounding the labor's actions. In addition, this allows the owner to smooth the labor's income over time by spreading the risk of the first-period outcome over both periods. At least some unexplored avenves in this area invite future accounting research: situations where owner has different incompatible objectives and negotiates a contract with labor; circumstances in which owner deals with multiple objectives and negotiates contracts with several labors simultaneously; the value of costly accounting information systems and communication in establishing, Pareto-optimal incentive contracts, and the value and effects of inside information, Thorough theoretical or empirical research on each of these topics not only would increase our knowledge about the role and significance of accounting information but could also provide explanations of the inherent differences among various organizations and in their economic behavior. behavior.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.21 no.3
• /
• pp.253-268
• /
• 2020

This study examined the effectiveness of policy measures in a growth management plan by analyzing empirically the influence of regulations and incentives in a non-urban growth management plan of Sejong City using the binomial logistic model. The parcel unit data related development location of Sejong City from 2012 to 2017 was used in the model. The analysis showed that time regulation in the growth management plan has a negative (-) impact on the spread of development, which means it is effective in slowing urban sprawl by lowering the profits of developers. The time regulation applied in Sejong City needs to be used actively in other cities in Korea to prevent urban sprawl. Nevertheless, floor ratio incentives had no influence in inducing development within the growth management area, which means a new incentive policy to meet the local characteristics is needed to strengthen the effectiveness of the growth management plan. This study is meaningful because it attempted an empirical analysis of the effects of the growth management plan at The National Territory Act, and this study could encourage further studies.

• Proceedings of the SAREK Conference
• /
• 2009.06a
• /
• pp.934-939
• /
• 2009

To promote citizen's involvement in the GHG(Green House Gas) reduction policy, Busan city administration adopted an pilot energy incentive system called 'energy mileage'. The energy mileage system was designed to make energy end-users motivated to reduce domestic electricity use by providing financial rewards. Through the course of the pilot period, 5,3330 householders volunteerly participated the pilot system. About 66% of the participants managed to make energy saving against the same period of the previous year while 38.8% achieved the targeted reduction rate(i.e. over 10%) and received the equivalent rewards.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.13 no.2
• /
• pp.1-8
• /
• 1988

This study suggests on optimal process when decision maker is confronted with expert's biased information under the situation that the bias is caused mainly by the difference of their interest. In order to make honest transmission of expert's probabilistic information, the concept of expert use and scoring rule to provide expert with an incentive is used in this paper. And expected regret concept is introduced to evaluate the value of expert's information. A simple example is also shown.

• Asia pacific journal of information systems
• /
• v.23 no.1
• /
• pp.1-19
• /
• 2013

The market for commercial open source software (OSS) has been rapidly growing with the proliferation of OSS. One way to commercialize OSS is the support model, which has been adopted by leading OSS firms such as Red Hat and JBoss. Despite the growing interest in OSS commercialization, little research has provided OSS support providers with a pricing guideline. In this paper, we examine the optimal pricing strategies for OSS support providers. Our benchmark is a monopoly case in which we investigate a startup software vendor's incentive to choose the OSS support regime over the proprietary one. Then we extend the model to a duopoly case in which OSS under the support regime competes against proprietary software. We characterize the conditions under which the OSS support model is viable under competition. We believe that our results offer insights to the OSS vendors who consider commercializing their OSS with a support model.

• Korean Management Science Review
• /
• v.25 no.1
• /
• pp.93-106
• /
• 2008

This study is focused on the problem of seat allocation for group travel demand in airlines. We first explain the characteristic of group demand and its seat allocation process. The group demand in air travel markets can be classified into two types : incentive and package groups. Allocating seats for group demand depends on the types of group demand and the relationship between airlines and travel agents. In this paper we concentrate on the package group demand and develop an optimization model for seat allocation on the demand to maximize the total revenue. With some assumptions on the demand distribution and the linear approximation technique, we develop a mixed IP model for solving our problem optimally. From the computational experiments, we can find our optimization model can be applied well for real-world application.

• Fashion & Textile Research Journal
• /
• v.2 no.3
• /
• pp.205-214
• /
• 2000

With the increase of using Internet in clothing shopping, the gathering of customer information based on online research is emphasized. The purposes of this paper summarized the several aspects of on-line research as new data collection methods and investigate some characteristics through reviewing extant literature on online research. We explored a conceptual model of response behavior for the purpose of the literature in a manner which enhance a deeper understanding of online response behavior. This model was focused on exchange paradigm instead of a "help-the-sponsor" approach. The proposed conceptual framework included questionnaire design, response incentive, commitment, convenience, expertise, response behavior (satisfaction and attitude), and online research performance.

• Journal of Forest and Environmental Science
• /
• v.32 no.1
• /
• pp.55-67
• /
• 2016

This paper investigated policies that drive the sustainable management of Ivorian forest which disappear at an annual rate of 250000 hectares. Based on an inter-temporal model for optimum allocation of forest land to three competing uses, the article found that sustainability depends on the incentive structure, of which forest taxes and fees are a key, though obviously not the sole, component. The study proposed to increase the area fee level by accounting for environmental externalities generated by forest harvesters and farmers. The paper showed that the area fee is a decreasing function of the forest natural rate of regeneration and the reconversion rate of agricultural surfaces. Finally, at the given forest natural rate of regeneration and the reconversion rate of agricultural surfaces, the model argued that the area fee need to be progressive (arithmetic progression) in the context of ecological equilibrium break while it should remain constant in normal situation.

• Proceedings of the Korea Inteligent Information System Society Conference
• /
• 2005.11a
• /
• pp.157-162
• /
• 2005

Seamlessness is the Keyword of U-Commerce Which may be defined as the commercial interaction among providers, consumers, products, and services, enabled and supported especially by the real-world seamless communication of each entity and object's digital information. However, the possibility of the seamless transactions increases the privacy risk of the entities involved. Therefore, the core issue of U-Commerce is how to promote seamless transactions while protecting the privacy. for the seamlessness, the role of incentive-emphasized business model is important since the seamlessness makes clear which economic entities contribute to a commercial transaction. Economic entities will reject the seamless transactions unless the sufficient incentives are given to them. In order to consider the privacy issue, we suggest an alternative U-Commerce architecture based on Hybrid P2P Model and Personal Information Base.

• The Korean Journal of Financial Management
• /
• v.25 no.1
• /
• pp.177-196
• /
• 2008

The megatrend of convergence in finance, telecommunication, and service industries is being spread over the whole industry. It has generated various kinds of contractual alliance or joint venture. Our paper builds a theoretical model for the profit sharing between two firms that participate in a joint venture. The model shows how the profit sharing rule affects the incentives of the participants, and, eventually, the efficiency. We derive the first-best solution of the profit sharing, where no incentive distortion exists. Then, we compare the incentive-affecting cases with the first best outcome, and assess the efficiency and the fairness of distribution. Our analysis shows that if we properly design the decision-making structure on transfer price and production quantity, we can reach the socially optimal efficiency.