• Management Science and Financial Engineering
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• v.18 no.2
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• pp.1-4
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• 2012

We study optimal trading strategy of a market maker with stock inventory. Following Avellaneda and Stoikov (2008), we assume the stock price follows a normal distribution. However, we take a constant expected rate of the stock return and assume that the stock volatility is an inverse function of the stock price level. We show that the optimal bid-ask spread of the market maker is wider for a higher expected rate of stock returns.

• Journal of Electrical Engineering and Technology
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• v.1 no.1
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• pp.1-7
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• 2006

In an electricity market, the spot market is normally integrated with a forward or future market. The advantage of the forward market is to allow the market participants to deal in a part or the whole trading portfolio at a fix price in advance and to avoid risk associated to the uncertain price of the spot market. Japan has introduced a continuous auction base forward market from April 2005. This paper analyzes the Japanese forward market rules and operations, and introduces a new algorithm that may improve the efficiency of the market itself. The proposed algorithm enables us to give consideration to the specific characteristics of the power system and to integrate them in the auction mechanism. The benefits of the proposed algorithm are verified on an electronic simulation platform and the results described in this paper.

• Journal of the Korean Society of Clothing and Textiles
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• v.37 no.6
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• pp.737-749
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• 2013

As more famous and luxurious fashion brands enter the online market, the changes in the online market include those in the composition of merchandise, price image, and consumer behavior. Focusing on these changes, this study examines the relation of consumer price attitude and impulse buying behavior towards internet apparel purchases. Data were obtained from 377 males and females in their 20s-40s who purchased apparel from an internet mall. Convenience sampling through the internet was performed. Collected data were analyzed by descriptive statistics, factor analysis, t-test, ANOVA, Duncan test, and regression analysis using SPSS for Windows 12.0. The results of this study are as follows. First, four dimensions of consumer price attitudes towards internet apparel purchases were found that included price-quality/prestige, sale, value for money, and low price orientation. Second, the influence of consumer price attitude on impulse buying is significant. As the price attitude of price-quality/prestige orientation and sale orientation increases, impulse buying orientation is stronger. Third, there are partially significant differences on the sub-dimensions of consumer price attitude and the influence of price attitude on impulse buying by gender and age. This study will be of help to internet companies by providing information in regards to a price attitude-based marketing strategy and an adequate response to customer impulse buying.

• Journal of the Korean Home Economics Association
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• v.37 no.4
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• pp.41-58
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• 1999

The purposes of this study were 1) to segment the market based on purchase frequency of products such as apparel, food, home electronics, life commodity in department store and low-price retailing, 2) to identify differences among segments in belief and attitude toward each store, purchase frequency of apparel items in each store and demographic variables. The data were collected via a self-administered questionnaire from 274 married women living in Seoul, Korea and analyzed by factor analysis, cluster analysis, one-way ANOVA and x$^2$-test. The results of this study were as follows: First, using cluster analysis on purchase frequency of products in each store, four groups were identified and labeled as department store patronage/ non-purchasers of apparel in low-price retailing(25.2%), purchasers of apparel in department store and low-price retailing(16.8%), low-price retailing patronage(30.3%) and non-purchasers of products in department store and low-price retailing(27.0%). Second, a series of one-way ANOV As revealed significant differences among four segments on beliefs of low-price retailing(four store attributes: price and variety of apparel product, facilities for convenient shopping, promotion, brand-reputation and fashionability of apparel product) and department store(three store attributes: price and variety of apparel product, facilities for convenient shopping and promotion) and attitude toward low-price retailing and department store. Attitude toward each store was yielded using Fishbein's multiattributes model. There were also significant differences among groups in purchase frequency of seven apparel items in low-price retailing and six apparel items in department store, and six demographic and personal variables(age, educational status, type of husband's occupation, monthly income and housing). Finally, the papers discussed manageral implications for each segments as well as theoretical implications.

• Korea Journal of Hospital Management
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• v.8 no.1
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• pp.1-23
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• 2003

General drug prices involve three stages: shipment stage, wholesaler stage and retail stage. Policies on drug price differ from country to country. Shipment stage prices are tightly regulated in countries like France and Netherlands. They are free in only a minority of advanced countries, even if these include some major players such as the US, Germany and, in a very limited sense, Japan. The situation in the UK is very complex with a semi-free system, where drug companies are free to set their own prices but cannot exceed a predetermined profit ceiling. Mark-up at both wholesaler and retail stages is formally admitted in most countries observed. Apart from the general drug prices, reimbursement price of insured drugs has been major policy concerns. Most countries reviewed in this study has exerted some control over reimbursement prices, but differ both in the way how and in the extent to which prices are admitted or fixed. Price fixing has been used in France and Japan. Some countries have transformed their system over time, particularly to move to reference pricing in the last decade. This mechanism has empowered the customer, and improved price competition on the market. Referring to the drug price policies in the advanced countries, this study makes some suggestions for the redirection of Korean price policy for reimbursement drug in health insurance as follows: to match appropriate policy tools to each policy goal; to maximize market mechanism through effective reimbursement price fixing which admits mark-ups in wholesaler and retail prices; to introduce reference pricing system in order to redirect patient's demand with a financial incentive to choose the best-priced drugs and to save the finance of health insurance; and to strengthen surveillance and monitoring mechanism in the drug market.

• Environmental and Resource Economics Review
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• v.16 no.2
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• pp.239-273
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• 2007

Bunker-C is sold at the different price in the market for international bunkering and for export, though the quality of bunker-c is not much different in two markets. The price difference in two markets tends to increase since 2002 in Korea. This study shows that there is a possibility for a structural change in the price difference in two markets in Korea around June, 2002. In the search for possible explanations for this structural change, empirical analyses found that the price difference in Singapore, which had not have any explanatory power before June, 2002, has explained the price difference in Korea after July, 2002. Other explanatory variable for the price difference was the growth rate of crude oil price in the previous period. The empirical results suggest that the price difference in bunkering market and export market might be explained by the price discrimination which is adopted as a competitive strategy by oil companies in competing with Singapore.

• Journal of the Korean Society of Industry Convergence
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• v.25 no.6_3
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• pp.1207-1219
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• 2022

「Act On Contracts To Which The State Is A Party」 stipulates that the "Construction Standard Production Rate" and "Construction Standard Unit Price" be used as the criteria for determining the estimated price of construction works performed by public institutions. In this regard, issues such as the application scope of the Construction Standard Unit Price, and the effect of budget reduction continue. However, due to the lack of quantitative data on the actual application of Construction Standard Unit Price, it is difficult to objectively evaluate various issues. In order to prepare data for objective evaluation of the Construction Standard Unit Price, this study analyzed the ripple effect of applying the Construction Standard Unit Price based on the bill of quantity. As a result of the analysis, the Construction Standard Unit Price ripple effect in the civil engineering part was 9.2%, and it was analyzed that there was a ripple effect of about 1.9% based on the civil engineering direct cost. In the construction part, the ripple effect was analyzed to be relatively high at 17%, but it was found to have a ripple effect of about 3% in the construction direct cost. Based on the total direct cost, the ripple effect was calculated as 2.2%. Based on the analysis results, it is possible to evaluate the effect of applying the Standard Market Unit Price, and it is expected to be used as basic data to solve issues. As a future study, it is necessary to additionally analyze the ripple effect by Standard Market Unit Price application range (over 10 billion, over 20 billion won, etc.) and delivery system type (comprehensive evaluation, qualification examination, technical bidding, etc.). In addition, it is necessary to study the appropriate ripple effect of the Standard Market Unit Price.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2020.06a
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• pp.204-205
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• 2020

Construction Standard Unit Price is the unit price calculated based on the market price for work items in construction projects that have already been conducted. It is used as basic data for calculating the budget price of public construction projects. In the Construction Standard Unit Price Book implemented in the second half of 2020, there are 1,810 types of unit prices. Since 2017, 100-150 construction standard unit prices have been revised semiannually (on January 1 and July 1 of each year) through Construction Site Surveys. Other work items have been set based on the rate of inflation during the corresponding period. Later in 2020, this procedure was changed, with on-site survey period extended to one year to strengthen the construction standard unit price investigation. The revisions previous announced during the second half of the year were changed only to reflect the price inflation rates. With such changes in the revisions to construction standard unit prices, one important issue that was raised: The timing of announcing the revisions during the second half of the year (reflecting the price inflation rates). The market unit wage, which is the unit price standard of labor cost that takes up a large part of the construction cost, is announced in January and September. The figures announced in September is reflected on the construction standard unit price four months later in January, but the market unit wage announced in January is reflected only six months after in July, which causes a timing issue. As such, the current study analyzed problems rising from the changed timing of the announcements of the construction standard unit price during the second half of the year, in addition to analyzing their impact on public construction projects.

• Journal of Distribution Science
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• v.13 no.8
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• pp.61-71
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• 2015

Purpose - Before the year 2000, the housing prices in Korea were increasing every decade. After 2000, for the first time, Korea experienced a decrease in housing prices, and the repetitive cycle of price fluctuation started. Such a "boom and bust cycle" is a worldwide phenomenon. The current study proposes a mathematical model to explain price fluctuation cycles based on the theory of consumer psychology. Specifically, the model incorporates the effects of buyer expectations of future prices on actual price changes. Based on the model, this study investigates various independent variables affecting the amplitude of price fluctuations in housing markets. Research design, data, and methodology - The study provides theoretical analyses based on a mathematical model. The proposed model uses the following assumptions of the pricing mechanism in housing markets. First, the price of a house at a certain time is affected not only by its current price but also by its expected future price. Second, house investors or buyers cannot predict the exact future price but make a subjective prediction based on observed price changes up to the present. Third, the price is determined by demand changes made in previous time periods. The current study tries to explain the boom-bust cycle in housing markets with a mathematical model and several numerical examples. The model illustrates the effects of consumer price elasticity, consumer sensitivity to price changes, and the sensitivity of prices to demand changes on price fluctuation. Results - The analytical results imply that even without external effects, the boom-bust cycle can occur endogenously due to buyer psychological factors. The model supports the expectation of future price direction as the most important variable causing price fluctuation in housing market. Consumer tendency for making choices based on both the current and expected future price causes repetitive boom-bust cycles in housing markets. Such consumers who respond more sensitively to price changes are shown to make the market more volatile. Consumer price elasticity is shown to be irrelevant to price fluctuations. Conclusions - The mechanism of price fluctuation in the proposed model can be summarized as follows. If a certain external shock causes an initial price increase, consumers perceive it as an ongoing increasing price trend. If the demand increases due to the higher expected price, the price goes up further. However, too high a price cannot be sustained for long, thus the increasing price trend ceases at some point. Once the market loses the momentum of a price increase, the price starts to drop. A price decrease signals a further decrease in a future price, thus the demand decreases further. When the price is perceived as low enough, the direction of the price change is reversed again. Policy makers should be cognizant that the current increase in housing prices due to increased liquidity can pose a serious threat of a sudden price decrease in housing markets.

• Journal of the Korean Statistical Society
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• v.36 no.2
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• pp.237-256
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• 2007

This paper studies the problem of option pricing in an incomplete market. The market incompleteness comes from the discontinuity of the underlying asset price process which is, in particular, assumed to be a compound Poisson process. To find a reasonable price for a European contingent claim, we first find the unique minimal martingale measure and get a price by taking an expectation of the payoff under this measure. To get a closed-form price, we use an asymptotic expansion. In case where the minimal martingale measure is a signed measure, we use a sequence of martingale measures (probability measures) that converges to the equivalent martingale measure in the limit to compute the price. Again, we get a closed form of asymptotic option price. It is the Black-Scholes price and a correction term, when the distribution of the return process has nonzero skewness up to the first order.