• Title/Summary/Keyword: Price discrimination

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Distributor's Lot-sizing and Pricing Policy with Ordering Cost inclusive of a Freight Cost under Trade Credit in a Two-stage Supply Chain

  • Shinn, Seong-Whan
    • International Journal of Advanced Culture Technology
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    • v.8 no.1
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    • pp.62-70
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    • 2020
  • As an effective means of price discrimination, some suppliers offer trade credit to the distributors in order to stimulate the demand for the product they produce. The availability of the delay in payments from the supplier enables discount of the distributor's selling price from a wider range of the price option in anticipation of increased customer's demand. Since the distributor's lot-size is affected by the demand for the customer, the distributor's lot-size and the selling price determination problem is interdependent and must be solved at the same time. Also, in many common business transactions, the distributor pays the shipping cost for the order and hence, the distributor's ordering cost consists of a fixed ordering cost and the shipping cost that depend on the order quantity. In this regard, we deal with the joint lot-size and price determination problem when the supplier allows delay in payments for an order of a product. The positive effects of credit transactions can be integrated into the EOQ (economic order quantity) model through the consideration of retailing situations, where the customer's demand is a function of the distributor's selling price. It is also assumed that the distributor's order cost consists of a fixed ordering cost and the variable shipping cost. We formulate the distributor's mathematical model from which the solution algorithm is derived based on properties of an optimal solution. A numerical example is presented to illustrate the algorithm developed.

The political economy analysis of the mobile phone subsidy (이동통신 보조금의 정치경제학적 분석)

  • Shin, Jin
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.19 no.8
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    • pp.1893-1900
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    • 2015
  • The government has the responsibility to prevent abuses of monopoly and promote competition in order to maximize consumer welfare. The government should address the asymmetry in the information as much as possible and ensure consumer choice. The subsidy seems to reduce the burden on the consumer service charges and handset prices but it actually distorts the market through price discrimination. The government caused the principal-agent problem by neglecting their appropriate role to prevent distortion of the mobile telecom market. The money used as subsidy is part of excess profit and could be transferred to down the price of mobile phone and charges and it would become a benefit to consumers. Separate announcement of subsidies by Mobile Communications Terminal Distribution Structure Improvement Act is a little developed policy but it was not actually realized. The market price close to that from perfect competition structure is plausible, ultimately.

A Positive Analysis of Housing Price Model in Seoul: Applications of Structural Equation Modeling

  • Kim, Kyong-Hoon;Lee, Yoon-Sun;Ahn, Byung-Ju;Kim, Jae-Jun
    • Architectural research
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    • v.9 no.2
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    • pp.27-35
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    • 2007
  • Our nation has a problem with discrimination of income distribution and inefficient of resources distribution caused by real estate price rising from a sudden economy growth and industrialization. Specially, in recent years, there is a great disparity of apartment price between the north and south of the Han river. Because the housing price is decided by the immanent value of a house and neighborhood effects of the regional where the house is situated, the housing price is occurred difference. The purpose of study was to analyze the influence of various factors of housing price. Also, this study tried to predict real estate market and to establish previous effective real estate policy. In this study, we analyzed the differences of housing price determinants about apartment developments between the north and south of the Han river, and found the important factors that affect the housing price using Structural Equation Modeling(SEM). As a result of this study, the older the buildings are, the more the housing price and the housing price rising ratio have increased, in Gang Nam area. This reason is that these have large possibility to be reconstructed and many convenient facilities, in this area. In the case of Kang Buk area, the increase rate of housing price are so low that they couldn't take effect on the housing price and they were declined. So to speak, constructing the infrastructure which takes effect on the increase rate of housing price is very urgent.

An Analysis of Market Segmentation and the Competitive Structure of the Shoes Market in Korea (우리나라 제화시장의 시장세분화 및 경쟁구조 분석)

  • Shin, Joung-Won;Hwang, Sun-Jin;Lee, Yun-Kyung
    • Journal of the Korean Society of Costume
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    • v.58 no.7
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    • pp.92-103
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    • 2008
  • The purpose of this study was to subdivide the shoes market in Korea and to evaluate the size and competitive strength of each segment. In order to implement the purpose of this study, the data of 300 respondents were analyzed using CBC(Choice-Based Conjoint measurement) and mixture model. The part-worth utilities were then used to predict the impact of price change on the choice probability using the legit model. As a result, the mixture model showed the optimal segments number and the shoes market in Korea was divided into 4 segments. Each segment was identified by distinctive characteristics such as brands, price and demand for comfortable shoes. Also, as a result of grasping the competitive structure and the competitive strength by sub-markets, one group was sensitive to price according to each competitive situation, whereby the choice probability was greatly influenced, and the other group on the contrary. This study made it clear that discrimination between brands whose profits Increase sharply if price is lowered and brands whose profits do not increase even if price is lowered can help brand managers with their decision-making on price lowering.

Gender discrimination and multivariate analysis using deboning data

  • Shim, Joon-Yong;Kim, Ha-Yeong;Cho, Byoung-Kwan;Lee, Wang-Hee
    • Proceedings of the Korean Society for Agricultural Machinery Conference
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    • 2017.04a
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    • pp.23-23
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    • 2017
  • Recent favor on high quality food and concern on food safety have demonstrated the superiority of Hanwoo (Korean native cattle). In general, the price of cow is higher than those of steer and bull, causing cheating issues in the market. Hence, this study is to discriminate genders of Hanwoo with identification of factors which highly influence gender discrimination based on the big-size deboning data. Totally, there were 31 variables in the deboning data, and we divided into them two categories: data obtained before and after deboning. Discriminant function analysis was then applied into the data to determined the accuracy of gender discrimination in Hanwoo. The result showed that Hanwoo could be classified by gender with 99.2% of accuracy when using all 31 variables. In detail, it was possible to identify 93 of 94 bulls (98.9%), 96 of 96 cows (100%) and 74 of 75 steers (98.7%). The most significant variables was chuck, sirloin, armbone shin, plates, retail and cuts percentage, sequentially. With variables obtainable before deboning, accuracies of classification were 91.5% for bulls, 92.7% for cows, and 89.3% for steers. The most significant variables was water, cold carcass weight and back-fat thickness. The discrimination accuracy was higher with data obtainable after deboning: bulls (98.9%), cows (99.0%) and steers (98.7%). In this case, chuck, sirloin and armbone shin were the factors determined the classification ability. This study showed that Hanwoo can be classified based on deboning data with appropriate statistics, further suggesting weight of cut of beef might be the standard for gender classification.

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Recognition Level of Imported Food and Its Correlation with Discrimination Ability (수입식품에 대한 인식도 및 분별력과의 상관성)

  • 한장일;김성애
    • Korean Journal of Community Nutrition
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    • v.4 no.1
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    • pp.95-102
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    • 1999
  • This study used questionnaires to investigate the safety awareness for imported foods by 365 male and female adults in Taejon. The results of the study were as follow : By factor analysis, the subjects' behaviors and awareness of the imported food was grouped into 3 factors such as 'health and quality factor', 'purchasing factor' and 'contamination factor'. 'Health and quality factor' and 'purchasing factor' were not recognized negatively by the subjects, moreover' contamination factor' was recognized very highly. The subjects' concern and worry about the imported food was also very high. The marital status, education level, nutriton knowledge adn recognition level of contamination by pesticides and heavy metals of foods partially affected the recognitio level of imported foods. The major selection criteria of imported food were distribution period(36.3%), price(28.8%) and purchasing experience(17.3%). The imported food mean discrimination score was 8.4±3.1 out of 13. The worst discriminatio score was red pepper. The subjects' experiences with imported foods selection affected the most instead of education level or nutrition knowledge. The higher discrimination score group more negatively recognized imported food and contamination recognition level was higher whereas the lowerdiscrimination score group more positively recognized the purchasing frequency and with to buy more easily. But both groups desired to reinforce contamination control. The better discrimination score of imported food pooring recognized sanitation concerns(p<0.05), quality(p<0.05), cooking convenience(p<0.01), desire for more variety(p<0.05), and the higher contamination recognition level(p<0.05) and desire to reinforce contamination control(p<0.01).

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Analysis of Non-linear Quantity Discount for Heterogeneous Characteristics (상이한 복수고객에 대한 비선형 가격할인)

  • Lee, Kyung-Keun
    • Journal of Korean Institute of Industrial Engineers
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    • v.15 no.2
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    • pp.23-31
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    • 1989
  • From the supplier's point of view, we examine the existence of a Pareto superior pricing schedule for one wholesaler with multiple retailers. In the case of multiple retailers, an order quantity pricing schedule should depends on the retailer's underlying characteristics. But identification of each retailer's characteristics may be impossible; rather, the wholesaler knows only the probability distribution of each retailer's characteristics. Perfect price discrimination is impossible because a separate pricing schedule cannot be tailored for each retailer. Some degree of discrimination is possible only by using a non-linear pricing schedule. From this analysis based on the non-linear pricing, we conclude that there is no Pareto superior pricing schedule for the case of multiple retailers.

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Thin Capitalization - The Arm's Length Approach through Blockchain

  • Lee, Jeong-Mi
    • Journal of the Korea Society of Computer and Information
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    • v.25 no.10
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    • pp.185-191
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    • 2020
  • This article proposes the unified an arm's length price of transfer pricing for thin capitalization since the scope of permanent establishment has been enlarged under Digital Economy and the implementation of Blackchain system to resolve the drawback of finding an arm's length price. The rule of current thin capitalization runs against the non-discrimination of taxation of the tax treaties and the national treatment which deals fairly with goods, sercice and capital money within the country under the treaty of commerce and navigator. In addition, the information of comparable uncontrolled debt are not available of current system to prove the debt which is not subject to the rule of thin capitalization. The united an arm's length price of transfer pricing for thin capitalization can apply to foreign investment as well as domestic corporations, thereby resolving the problem of the non-discrimination of taxation of the tax treaties and the treaty of commerce and navigation. The availability of transaction level data through Blockchain platform to decide whether the debt can be subject to thin capitalization can resolve the issue of comparable uncontrolled debt transaction which can't be found in current business transactions. This article should shed light on the proposing of the unified an arm's length price of transfer pricing for thin capitalization and Blockchain system to prevent the income shifting. This propose provide implication for policymakers on current system of thin capitalization and arm's length principles.

Effects of Reference Price Advertisements by Service Reputation (서비스 명성에 따른 준거가격광고 효과)

  • Park, Min-Sook;Chun, Myung-Hwan
    • The Journal of the Korea Contents Association
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    • v.8 no.9
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    • pp.124-132
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    • 2008
  • Price is an important marketing issue in current competitive environment characterized by various distribution channels such as economic circumstance and the Internet. Many companies, for their best profits, use a price discrimination strategy such as price discount that reinforces consumer's purchasing behavior and they employ advertising strategy by presenting reference price with information of price discount in advertisements. Accordingly, many research verifies the advertising effects of presented reference price in advertisements, this study tries to expand the existing study area which is limited on reference price of product by examining the its effects on service area. It also aims to verify the effects of reference price advertisements by the level of service reputation. For this experiment, a factorial design with service reputation and presented method of reference pricewas used. The result of this study is that attitude toward price and use intention on presented reference price in service advertisements are higher than not presented it. In the case of high service reputation, advertising effect on presented reference price in service advertisements are greater than presented price discount rates in service advertisements. And in the case of low service reputation, advertising effects can be much greater by just presented reference price in service advertisements. Therefore, in service advertisements, strategic views on presented methods of reference price by the level of service reputation are essentially needed.

A Study on the research consumer′s action style and important proper degree at the select fastfood (패스트푸드점 선택을 위한 소비행태 분석 및 중요도에 관한 연구)

  • 진양호;홍기운;김형준
    • Culinary science and hospitality research
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    • v.6 no.3
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    • pp.167-192
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    • 2000
  • The purpose of this study is to research consumer's action style. and then to make a marketing strategies. The strategic plan to consumer's action style on the fast-food industry were as follows; First, the group that coefficient of utilization is so frequent and an age is young are requested concentrative or discriminative marketing as the price discrimination and market segementation, the price value of the products value has to manage effectively, Second, establishment of corporate image and improvement of products image are requested. The result of this study, fast-food industry will be needed marketing activities that are discriminative strategies, positioning strategies, education training, and customer management. And system construction that is equivalent to customer needs, and the continuous coustomer studies are requested.

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