• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2001.05a
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• pp.591-596
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• 2001

Many consumption goods, most notably in network markets including the telecommunications industry, exhibit network externalities. For that reason, standardization is the tore Issue in network markets with powerful positive feedback. firms in the telecommunications industry compete intensively against one another to build on early lead due to w inertia and network externalities. Therefore, a firm's strategies err very important in standards competition. In this paper, we'll examine the patterns of standards competition and cooperation, anti a variety of firms' strategies in the telecommunications industry. And then, we'll examine the trend of the change from standard competition to standard cooperation. After that, we'll suggest the national policies for the preemption.

• Journal of Digital Convergence
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• v.17 no.10
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• pp.177-186
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• 2019

The purpose of this study is to enhance the understanding of consumer experience and behavior of Internet of Things (IoT) services and to provide practical implications through investigating the impact of benefits-cost factors and network externalities on consumers' adoption intention of IoT services. An online survey was conducted on general consumers in their 20s to 60s who were aware of the IoT services and 328 data were collected. Using SPSS 24.0, frequency analysis, correlation analysis, factor analysis, and hierarchical regression analysis were conducted. As a result, the level of consumers' IoT service experience in various contexts was examined, and entertainment, informativeness, loss of humanity, compatibility, and complementarity were found to have a significant effect on consumers' adoption intention of IoT services. This study suggests that strengthening network externality effects by increasing compatibility and complementarity is important in promoting consumers' adoption of IoT services. In future studies, it is necessary to adopt specific Internet of Things services to verify the validity of the models developed in this study.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2006.11a
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• pp.437-452
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• 2006

Previous research on two-sided markets has, for the most part, concentrated on indirect network externalities between buyers and sellers. This paper considers direct competition effect among sellers and among buyers as well as indirect network externalities. We develop an analytic model of C2C e-marketplaces and examine whether a monopolistic incumbent could successfully deter new entry into its market. We find that the effect of the number of sellers or buyers on the price of goods depends on whether sellers have decided to sell the goods using an auction or fixed pricing rule and on the characteristics of the goods. We argue that when the effect of the number of sellers on the price of goods is significantly larger than that of buyers, there is a high possibility of entry. In particular, we show that entry becomes more difficult to deter as fixed-price format is adopted more frequently or the proportion of collectables is relatively low.

• 한국IT서비스학회:학술대회논문집
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• 2008.11a
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• pp.175-178
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• 2008

With rapid advancement of IT and Internet technologies, online market is surely becoming a stage of the competition among various forms of platform providers. This study show the significance of the negotiation process in the platform pricing strategy and observe several external/internal factors that might affect the negotiation power of the identities surrounding the platform. Major theories used in this study are the resource-based-view and network theory. Resources resulting in a negotiation power of the content providers and platform providers turn out to be widely scattered in their business areas - from product characteristics to the size of the content provider. End-user (or buyer) group which cannot make a strategic move for the organized development and use of resources is taking advantage of network externalities to support its negotiation power.

• East Asian Economic Review
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• v.23 no.1
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• pp.3-26
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• 2019

This study investigates the effect of high-skilled inventor emigration rate on growth rate of the country of origin (COO). Inventor emigrants represent the human capital that can generate highly innovative work. The social network they form spurs knowledge diffusion and technology transfer back to their COOs, which in turn affects innovation and growth in their home countries. We run dynamic panel estimation for 154 countries during 1990-2011, and empirically show that a positive and statistically significant effect exists for the interaction of inventor emigration and trade. The result indicates that the direct negative impact of the brain drain can be mitigated by the positive feedback effect generated by the high-skilled inventor emigrants abroad. When coupled with an active trade policy that reinforces growth, countries can partially recoup the direct effect of the human capital loss. We stress the importance of international trade for successful technology transfer to occur, and offer insights for policies that can utilize the benefits of the rich social network of their high-skilled emigrants.

• Journal of Internet Computing and Services
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• v.18 no.4
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• pp.109-119
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• 2017

This paper is to analyse empirically using the data collected from Korea portal Naver's ad management system and show online ad platform may not be two-sided market. It is aim of this study to propose the appropriate approach to define the market, based on the empirical result. Here are two research questions to be reviewed. First, is there any consistency between business model of search advertising and definition of two-sided market which Rochet-Tirole proposed in 2006? Second, do indirect network externalities exist significantly in search advertising market? if so, this study is going to estimate the level of it through empirical measurement. Based on Luchetta's paper which suggested that google may be one-sided market, it performed the correlation & regression analysis to prove his suggestion. The result is that online search advertising costs increased by more than 50 won when advertisers increased by one unit. However, there was no significant correlation and regression between the search frequency and online search advertising cost. It means that there is little possibility to identify two-sidedness in online search advertising service(market) because of no(or little) indirect network externalities which are a necessary condition for two-sided market. This result has three implications, such as the availability to adapt traditional market definition tools to online search advertising market, the possibility enhancement to find the fundamental competition elements in defined market and promotion of the powers of persuasion in competitive market reality. It is significant that the gap between legal scholars including regulatory practitioners and economists can be overcome to some extent. who have shown the different perspective on the two-sided market.

• Management Science and Financial Engineering
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• v.16 no.2
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• pp.1-15
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• 2010

Digital convergence which means the convergence of industry areas related to digital technologies is an important phenomenon in business, which will decide the fates of firms in the near future. The only firms which can create synergy effects from digital convergence are expected to be the winners in the fierce competition of digital convergence era. In our analysis, we examine the strategy of an integrated firm which has businesses in two different industry areas which are related to each other. By using a game theoretical model, we show how the integrated firm can win over two single separated firms which have business in only one industry area each by leveraging the two businesses the integrated firm has. In our welfare analysis, we also show that this convergence may be even beneficial to consumers, which seems counter-intuitive to social concerns about anti-competitive behaviors by integrated firms. Additionally, we study comparison between industry convergence and product convergence.

• Journal of Technology Innovation
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• v.12 no.1
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• pp.219-240
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• 2004

As Shapiro and Varian argue the open approach generates bandwagon effects and facilitates the diffusion of a standard thanks to network externalities. However, the open approach is not linked automatically to economic benefits as suggested by some famous cases as the IBM PC history. On the contrary, the closed approach enables a tight control over a technology and its development, and insures the appropriation of economic benefits. As Shapiro and Varian suggest, a firm can also decide to mix an open approach with tight control over improvement or extentions. Patent pool is to offer fair, reasonable, nondiscriminatory access under a single license to patents that are essential for the use of standards-based or other platform technologies. patent pool offers only one license to everyone, Since each patent is essential, the royalty rate and thus the value is the same whether a licensee uses one or more patents.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.1
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• pp.85-100
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• 2009

An online marketplace, such as eBay, is an example of two-sided markets. In online marketplaces, there are transactions between sellers and buyers and direct competition effects among sellers and among buyers. Previous research on two-sided market has not handle these competition effects and mostly focused on indirect network externalities between sellers and buyers. We analyze the fee structure of an online marketplace considering direct competition effects among sellers and among buyers. We find that when fees for sellers and buyers can be imposed, an auction or fixed-pricing rule can be chosen according to the characteristics of a product traded. But when only fees for sellers can be imposed, an auction can be taken as a trading mechanism solely.

• Knowledge Management Research
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• v.17 no.4
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• pp.191-213
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• 2016

Since the smartphone era has spurred world-over, social network services have become a part of people's daily lives. However, this relatively new phenomenon of technology development raises several negative side effects such as cyberbullying. One of the representative cases of cyberbullying is posting malicious comments online. Multiple social issues arising from this have given impetus to the "benevolent comments campaign" in order to restrain the diffusion of malicious comments. Benevolent comments have advantages that generate positive externalities such as inspiring ethics for an appropriate internet culture, but there is a lack of theoretical research on the deeper understanding of posting benevolent comments. This study thus aims to extract the motivations behind posting benevolent comments through in-depth interviews and suggest alternatives for relative issues through the causal relationship diagram of the system dynamics methodology. This work contributes to our understanding of the factors that affect the increase and decrease in benevolent comments in distinct structural frameworks.