• Management Science and Financial Engineering
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• v.11 no.3
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• pp.95-107
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• 2005

As online shopping malls have emerged as a substantial shopping channel, they have used various sales promotion strategies to acquire new customers. Most of these strategies have been applied by offline malls for years. One, loss-leader pricing, is a type of promotional pricing in which stores sell well known products below their marginal cost, in order to attract customers and induce them to purchase more goods through impulse buying. This strategy is based on the expectation that customers will factor transaction costs into their purchasing decisions. However, its application to online malls fails to recognize that transaction costs are lower online, and that customers will behave differently as a result. Our study predicts that loss-leader pricing will not work online because online malls entail lower searching and moving costs than offline malls The study examines the effectiveness of loss-leader pricing with empirical data from a survey as well as log data from a Korean online shopping mall. The results show that while loss-leader pricing does attract customers to online shopping malls, it encourages cherry-picking rather than impulse purchases of regular-price goods.

• Journal of the Korean Solar Energy Society
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• v.31 no.6
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• pp.23-31
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• 2011

The wind energy is one of the most prospective resources in renewable energy. However, the WTGS shouldn't be installed indiscriminately because the power system can be negatively influenced by a variable and uncertain nature of the wind energy. It is the reason why it has to be limited to install the WTGS thoughtlessly mentioned above that support the importance of the maximum penetration limit of wind power. It may required that power system operators suggests a new way of power system operation as percentage of the WTGS increase in the existing power system. The wind power is fixed in a limited area, so using rate of the wind power will be increased by installing additional WTGS. In this paper, we have studied on economic evaluation of the wind capacity increased by restricting the output of the WTGS as the way to increase the wind capacity.

• Proceedings of the International Union of Geodesy And Geophysics Korea Journal of Geophysical Research Conference
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• 2003.05a
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• pp.18-18
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• 2003

Three-dimensional finite-difference simulation of earthquake ground motion is performed using a locally variable time-step (LVTS) scheme matching with discontinuous grids. Discontinuous grids in three directions and extension of the discontinuous grids' boundary to the free-surface in the LVTS scheme minimize the cost of both the computational memory and the CPU time for models like the localized sedimentary basin. A simplified model of sedimentary basin is dealt to show the feasibility and efficiency of the LVTS scheme. The basin parameters are examined to understand the main characteristics on ground-motion response in the basin. The results show that the seismic energy is concentrated on a marginal area of the basin far from the source. This focusing effect is mainly due to the constructive interference of the direct S-wave with the basin-edge induced surface waves. The ground-motion amplification over the deepest part of the basin is relatively lower than that above the shallow basin edge. Therefore the ground-motion amplification may be more related to the source azimuth or the direction of the incident waves into the basin rather than the depth of it.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.2
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• pp.65-71
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• 2020

Worldwide plant market keeps maintaining steady growth rate and along with this trend, domestic plant market and its contractors also maintain such growing tendency. However, in spite of its external growth, win-win growth of domestic material industry that occupies the biggest share in plant industry cost portion is extremely marginal in reality. Domestic plant material suppliers are required to increase awareness of domestic material brand by securing quality and reliability of international standard through improvement of design quality superior to that of overseas material suppliers. Improvement of design quality of plant material becomes an essential element, not an option, for survival of domestic plant industry and its suppliers. Under this background, in this study, priority and importance by each evaluation index was analyzed by materializing plant design stage through survey of experts and defining evaluation index by each design stage and based on this analysis result, evaluation index of stage-gate based decision-making process that may improve design quality of plant material was suggested. It is considered that by utilizing evaluation index of stage-gate based decision-making process being suggested in this study, effective and efficient decision-making of project decision-makers would be enabled and it would be contributory to improve design quality of plant material.

• Korean System Dynamics Review
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• v.6 no.1
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• pp.99-123
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• 2005

Although the generation market is competitive, the power market is easily exercised the market power by one generator due to its special futures such as a limited supplier, large investment cost, transmission constraints and loss. Specially, as Korea Electric industry restructuring is similar US competitive wholesale electricity market structure which discovered the several evidences of market power abuse, when restructuring is completed the possibility that market power will be exercised is big. Market power interferes with market competitions and efficiency of system. The goal of this study is to investigate the market price effects of the potential market power and the proposed market power mitigation strategy in Korean market using the forecasting wholesale electricity market model. This modeling is developed based on the system dynamics approach. it can analyze the dynamic behaviors of wholesale prices in Korean market. And then it is expanded to include the effect of market condition changed by 'strategic behavior' and 'real time pricing.' This model can generate the overall insights regarding the dynamic impact of output withholding by old gas fire power plant bon as a marginal plant in Korean market at the macro level. Also it will give the energy planner the opportunity to create different scenarios for the future for deregulated wholesales market in Korea.

• Proceedings of the KIEE Conference
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• 2004.11b
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• pp.261-265
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• 2004

This paper proposes a fuzzy dual method for analyzing long-term transmission system expansion planning problem considering ambiguities of the power system using fuzzy lineal programming. Transmission expansion planning problem can be formulated integer programming or linear programming with minimization total cost subject to reliability (load balance). A long-term expansion planning problem of a grid is very complex, which have uncertainties fur budget, reliability criteria and construction time. Too much computation time is asked for actual system. Fuzzy set theory can be used efficiently in order to consider ambiguity of the investment budget (economics) for constructing the new transmission lines and the delivery marginal rate (reliability criteria) of the system in this paper. This paper presents formulation of fuzzy dual method as first step for developing a fuzzy Ford-Fulkerson algorithm in future and demonstrates sample study. In application study, firstly, a case study using fuzzy integer programming with branch and bound method is presented for practical system. Secondly, the other case study with crisp Ford Fulkerson is presented.

• Information Systems Review
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• v.3 no.1
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• pp.3-18
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• 2001

The Internet is taking up every single life of us with a huge speed of growth. If the ideal market called 'perfect competition' in economics will ever come true in this digital world, the sellers won't be able to have monopolistic profits above the marginal cost any more, letting the resource allocation much more efficient. This paper attempts to test whether this theory is true in e-market as well through observing price differences between online and offline retailers of extremely homogeneous products, CDs. Since most results from previous research were supporting the inefficiency of e-market in price level, price adjustment, and especially price dispersion, this article designed the research methodology most carefully. The results of pervious works are partly due to the immaturity of the Internet market or due to the uniqueness of the American CD market, where oligopolistic market players are significantly dominant. The analysis of price data of 20 titles from 20 retailers for five weeks supports that online market is more efficient than offline market with statistical significance in all the three dimensions. We could conclude that the e-market is going much more efficient at least compared to the offline market and the more would it be unless the sellers resist and prevent comparison-shopping.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.2
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• pp.63-73
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• 2019

The paper aims to investigate relationships between technology and innovation management, total factor productivity and economic growth in China. By comparing the trends in total factor productivity growth of industrialized economies (i.e. OECD), this study intends to showcase the importance of total factor productivity progress in the Chinese economy. The study employs time series data of an annual basis for the period from 1977 to 2016 retrieved from the World Development Indicator. The study employs unit root test, cointegration test, fully modified least squares estimation method, canonical cointegrating regression and dynamic least squares estimation method to test the hypotheses. The results of the cointegrating regression analysis show that manufacturing growth leads to an increase of total factor productivity in the short-run in China. The findings of the study suggest that manufacturing (i.e. technology and product innovation) is positively related to the increase of total factor productivity in the short-run and total output growth in the long-run. The findings suggest that promoting technology and innovation management and supporting R&D subsidies may reduce the marginal cost of conducting R&D and increase the rate of technology and innovation management and R&D activity and therefore, the total factor productivity growth rate.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.79-89
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• 2023

The paper aims to investigate the asymmetric long-run and short-run relationships between inflation and remittance outflows in the Kingdom of Saudi Arabia (hereafter KSA) over the period 1971-2019 by using the Nonlinear Autoregressive Distributed Lag (NARDL) model. The statistical tests have supported the validity and stability of the model. The Wald F-test statistics confirm the existence of a long-run equilibrium relationship among the model variables; remittance outflows, positive (negative) shocks in inflation rates, investment, real GDP, and trade openness. Moreover, the empirical results confirm the existence of an asymmetric effect of the inflation rate on remittance outflows. The response of foreign workers to an increase in inflation rates differs from their response to a decrease in inflation rates. However, this asymmetric relationship between the increases/decreases in inflation and remittance outflows is significantly weak. The weakness of this relationship is due to the high marginal remittance propensity of migrant workers, which is explained by the low consumption propensity of foreign workers and their ability to adjust to the high cost of living due to inflation and the imposition of accompanying fees. Finally, the change in the inflation rate is not among the main factors influencing foreign remittance decisions in Saudi Arabia.

• New & Renewable Energy
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• v.19 no.4
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• pp.61-71
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• 2023

The necessity of energy utilization using livestock manure has been proposed with the decrease in domestic agricultural land. Livestock manure solid fuel has been investigated as a promising energy resource owing to its convenient storage and use in agricultural and livestock fields. Additional electricity production is possible through the integration of a biomass combustion boiler with the organic Rankine cycle (ORC). In this study, a mathematical system model of the cattle manure solid fuel boiler integrated with the ORC was developed to analyze the components' performance under variable operating conditions. A sensitivity analysis was conducted to confirm the electrical efficiency of the ORC turbine and the applicability of this system. The minimum required waste heat recovery rate was derived considering the system marginal price and levelized cost of electricity of the ORC. The simulation results showed that, in Korea, more than 77.98% of waste heat recovery and utilization in ORC turbines is required to achieve economic feasibility through ORC application.