• Journal of Information Technology Services
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• v.10 no.2
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• pp.75-94
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• 2011

The industrial ecosystem around the Internet services has been evolving since the Internet was first introduced. The Net Neutrality issue best represents the process of the evolution and presents an inevitable challenge that the industry should overcome. This paper deals with this structural change with the Two-Sided Market framework and provides a System Dynamics(SD) model to evaluate the economic implications of the net neutrality policy. In particular, our approach analyzes the policy impacts when two competing platforms (network providers) play a role of the platform in a typical two-sided market, which connects Content Providers(CPs) with users. Previous studies show that the indirect network externality between these two markets makes the entire system tip to one platform. When the multi-homing in the CP market is allowed as in our model, however, their argument may lose its validity. To examine the system behavior, conducted here is SD simulations of our model. The simulation results show that co-existence of the competing platforms persists with the network effects over a certain threshold. The net neutrality policy seems to lower the threshold based on our experimental outcomes.

• Korean System Dynamics Review
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• v.12 no.1
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• pp.5-37
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• 2011

This article aims to clarify what is the best investment behavior in Capital Intensive Industries(hereinafter CIIs) which show repeated business cycles. In CIIs, investments is centered in the period of upturns and goes beyond the adequate level because of the time that takes to completion of facilities. This over-investment causes oversupply and downturn, and in period of downturn, investments shrinks under the adequate level. The repeated change of over-investment and under-investment is the reason for the business cycles. In this article, a simulation model replicating the business cycles in CIIs was constructed and the effects of various investment strategies was tested. The results are as follows. First, the investment behavior following market condition causes the ongoing fluctuation of profits. Second, strategic increase in flexibility such as adjustment of facility utilization and shortening of facility construction time contributes to the increase in profit and stabilization of income. Third, in relation to market condition, the constant investment is more profitable in stagnated market and the counter-market investment is more profitable in growing market. In sum, it is desirable not to synchronize their investment with those of competitors.

• The Journal of Information Systems
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• v.15 no.4
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• pp.99-124
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• 2006

The development of IT has made it possible to use various terminal systems for financial transaction and demands for financial survices are getting more and more diversified at the same time. Among others, mobile banking service market based on IC chips has been expanded its service areas and the number of mobile banking users has been increased. The study analyzes and tests the dynamic effects of the inflow of potential customers on mobile banking market condition by using system dynamics methodology to identify the dynamic structure of mobile banking market. The simulation model is designed to track the variation in the number of subscribers of mobile banking servides according to two scenarios, and the results are as follows; First the effect of word of mouth by customers who have used the service already is significant. The satisfactory level of early adopters is reflected in WOM, and as a test result shows, increase in word-of-mouth causes the growth of potential customers' demands for mobile banking service. Second, perceived attractiveness of mobile banking service market is another important construct. Factors such as convenience, mobility, time saving, security, and various services explain the construct perceived attractiveness of the service, and it makes the potential customers adopt the service, causing the increase of demands.

• ETRI Journal
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• v.20 no.1
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• pp.1-15
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• 1998

The recent technological and industrial revolution dictates a new approach in constructing Korean Information Infrastructure. Lacking past data on the newly emerging markets, econometrics methodologies cannot accurately forecast future path of advanced networks, let alone dynamic impacts of public policies. In this paper, we have built a system dynamics model of the Korean Information Infrastructure and simulated diverse policy measures including market integration and government initiative in investment for experimenting their effectiveness. The most counterintuitive result of our research is that the market integration policy will facilitate CATV networks at an early stage until the year 2010, but will result in a diminished market size in the long run. With the system dynamics approach, we can enhance our understanding of the complex policy systems and get valuable insights through learning by modeling and simulation.

• The Pure and Applied Mathematics
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• v.16 no.4
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• pp.427-441
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• 2009

The method of Lattice Dynamical System is used to establish a global model on an infinite chain of many local markets interacting each other through a diffusion of prices between them. This global model extends the Walrasian evolutionary cobweb model in an independent single local market to the global market evolution. We assume that each local market has linear decreasing demands and quadratic supplies with naive predictors, and investigate the stationary behaviors of global price dynamics and show that their dynamics are conjugate to those of $H{\acute{e}}non$ maps and hence can exhibit complicated behaviors such as period-doubling bifurcations, chaos, and homoclic orbits etc.

• Korean Management Science Review
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• v.23 no.3
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• pp.195-207
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• 2006

In this paper, we develop the business model of telecommunication company that facilitates to explore new business opportunities on aging society. Considering the trend of aging society, we analyze the market drivers of senior market. Analyzing market dynamics and value chain, we design a set of business models for telecommunication company. In addition, we describe the evolution path of the proposed business model in terms of technology development and market. Finally, we develop a framework for evaluating the effectiveness of the business model.

• Korean System Dynamics Review
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• v.12 no.4
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• pp.93-124
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• 2011

The introduction of competition in the generation of electricity has raised the fundamental question of whether markets provide the right incentives for the provision of the capacity needed to maintain system reliability. Capacity mechanisms are adopted around the world to guarantee appropriate level of investment in electricity generation capacity. In this study, we discuss these approaches and analyze the capacity pricing mechanisms from the adequacy perspective. We conclude that the design of capacity mechanism is very important to decrease electricity spot price and increase total electric capacity. Specifically, the constant of capacity pricing mechanism made a difference to the performance of electricity market. However, the slope of capacity price mechanism is better than the constant of that in improving performance of electricity market.

• Journal of the Korean Society of Industry Convergence
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• v.25 no.4_2
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• pp.627-636
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• 2022

Market convergence plays an increasingly important role in sustaining competitiveness and providing impetus for the new product development. However, existing research focused mostly on the analysis of convergence at technology level. This study examines the phenomenon of market convergence based on the start-up data. Similar to the analysis of technology convergence, this study adopts the concept of co-classification analysis for constructing the co-occurrence matrix and the corresponding network. In this context, network centrality measures were calculated to assess the influence of individual market segments. Based on three metrics "growth", "persistence" and "novelty", the market convergence dynamics were explored and promising interactions between two distinct market segments were highlighted. The findings suggest that both segments "AI" and "blockchain" are acting as a driver that fosters market convergence in the startup landscape. The analysis results can provide valuable information for the R&D managers and policy makers in the design of targeted policies and programs, which can promote market convergence and interdisciplinary knowledge transfer.

• Korean System Dynamics Review
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• v.7 no.2
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• pp.35-56
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• 2006

Korea is implementing strong regulatory derives such as Feed in Tariff to provide incentives for renewable energy developers. But if the government is planning to increase the renewable capacity with only "Price policy" not considering the investors behavior in the competitive electricity market, the policy would be failed. It is necessary system thinking and simulation model analysis to decide government's incentive goal. This study is focusing on the assesment of the competitiveness of renewable energy with the current Feed in Tariff incentives compared to the traditional energy source, specially coal and gas. The simulation results show that the market penetration of renewable energy with the current Feed-in-Tariff level is about 60-70% of the government goal under condition that the solar energy and fuel cell are assumed to provide the whole capacity set in the governmental goal. If the contribution from solar and fuel cell is lower than planned, the total penetration of renewable energy will be dropped more. Notably, Wind power turned out to be proved only 10% of government goal because of its low availability.

• The Journal of the Korea Contents Association
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• v.10 no.5
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• pp.210-219
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• 2010

Consumers differ in both horizontally and vertically. Market segmentation aims to divide horizontally different (or heterogeneous) consumers into more similar (or homogeneous) small segments. A specific consumer, however, may differ in vertically. He (or she) may belong to a different market segment from another one where he (or she) belonged to before. In consumer panel data, the vertical difference can be observed by his (or her) choice among brand alternatives are changing over time. The consumer's vertical difference has been defined as 'dynamics'. In this research, we have developed a binary probit model with random-walk coefficients to capture the consumer's dynamics. With an application to a consumer panel data, we have examined how have the random-walk coefficients changed over time.