• Journal of Korean Institute of Industrial Engineers
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• v.13 no.2
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• pp.65-77
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• 1987

Congestion occurs whenever users interfere with each other, while competing for scarce resources. In a congested market, such as a telecommunication service market, users of telecommunication services incur costs in using the service in addition to the price. The user's own time costs involved in learning to use the service, waiting for the service, and making use of the service are typically greater than the price of telecommunication services. A market equilibrium analysis is performed in which a method for user demand aggregation is developed. The effects of price changes on user demands and market demands for congested services are examined. It is found that total market demands may increase as the price for less-congested services increase under certain demand conditions. This suggests that a nonuniform pricing scheme for a congested service may improve the utilization of the congested system. The sign of price cross-elasticity for congested services is show to vary with demand conditions. A possible complementary property of congested services is found and the implication of such a property is discussed. It is argued that such a complementary property may lead to a cross subsidy in a market with congestion. Finally, comparisons between uniform pricing and nonuniform pricing policies are made. A specific numerical example is given to show that a nonuniform pricing policy may be Pareto superior to a uniform pricing policy.

• Review of Culture and Economy
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• v.19 no.2
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• pp.29-50
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• 2016

This paper is to apply an individual travel cost method(TCM) to estimate demand functions for cultural services enjoyed by visiting 3 branches of the National Museum of Modern and Contemporary Art located in the Seoul Metropolitan area. This paper extends the standard TCM by incorporating opportunity costs of leisure time and two different data generating process - 398 respondents from an on-site survey and 600 respondents from a general household survey. Negative binomial models reflecting the non-negative integer nature of visiting frequency with over-dispersed variance were best fitted for demand functions, in which residents of Seoul metropolitan area surveyed from on the site exhibited higher visitation demand for the national art museum. Price elasticity and income elasticity differed by respondents' residency. Price elasticity of long distance visitors (-0.21) was more inelastic from those of Seoul residents (-0.34 ~ -0.5). Moreover, regional residents outside of Seoul area seemed to consider that services from the national art museum is a normal good with income elasticity of 0.5, whereas the Seoul residents seemed to perceive it to be an inferior good with income elasticity of -0.05.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.9
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• pp.5564-5577
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• 2014

This study examined how the differences in household characteristics influence consumer expenditure patterns. The Price-Scaling AIDS model with household income and expenditure survey data were used for the analysis. The results showed that the income elasticity of the service items is greater than non-service items, indicating an increase in higher demand of service items with the same increase in household income. The household expenditure patterns vary according to the commodities, holding age and income level. The so-called traditional pattern, which emphasizes spending for non-service items, changed to the one with a higher expenditure ratio for service items. Such a change in household expenditure patterns naturally derives the expansion of the relevant service market; hence, the growth of the related service industry. This highlights the need to formulate an appropriate response from the supply side that deals with the changes in the service market.

• The Journal of Society for e-Business Studies
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• v.17 no.2
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• pp.105-114
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• 2012

Recently, global warming, energy shortage, and environmental disruption have been serious problems in every nation. It became more and more important to reduce the emission of CO2 and to use of energy efficiently. Smart grid was also introduced using the rapidly developing information technology. It deployed the mutual communication concept between customers and the suppliers in the electricity supply. There were increasing demands to adopt the smart meter and to present incentive for efficient energy usage in many developed countries. The objective of this research was to develop the optimal real time pricing model which maximized the profit of the power retailer and reduced the usage of energy. The simulation study was given to show the usefulness of the model. Simulation considered the customer demand response rate and price elasticity rate. The price elasticity rate was compared in the condition of fixed value according to time and variable value according to the customers. The optimal price model could maximize the profit of the power retailer and reduce the energy usage of the consumers.

• Journal of Korea Water Resources Association
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• v.39 no.12 s.173
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• pp.1057-1066
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• 2006

Water is an indispensable input to human's existence and industrial production. A water supply project would demand considerable costs, but produce economic benefits, which are importantly utilized in the project evaluation. In this situation, this study attempts to value the economic benefits from the residential water supply in Seoul. In particular, yearly consumer surplus and economic value of water supply for eleven water authority agencies in Seoul are measured during the period 2001-2004. Information on price elasticity required in calculating consumer surplus is obtained from direct estimation of the residential water demand function, and the consumer surplus is assessed by using a recently developed formula. Price elasticities used here are -0.810 and -1.011, and the estimated consumer surplus and economic value amount to 131.9 to 164.6 billion won and 398.6 to 431.3 billion won, respectively.

• Environmental and Resource Economics Review
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• v.32 no.4
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• pp.267-292
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• 2023

In this paper, we estimate a time series model of energy demand in the industrial sector with an asymmetric response to energy prices. Including the asymmetric response to energy prices in the model strengthens robustness of the cointegration relationship and reduces the variation of the estimated coefficients across the estimating methods. We find that rising energy prices have a larger impact on energy demand than falling energy prices, with the largest impact occurring when energy prices rise to new highs. The estimation results are partially improved when using gross output rather than value added as a measure of production. Using single equation methods to estimate the asymmetric response model, the elasticity of gross output ranged from 1.05 to 1.09 and the elasticity of price-rise ranged from -0.48 to -0.56, which is similar to the results of international studies.

• Journal of Energy Engineering
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• v.26 no.2
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• pp.80-92
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• 2017

This paper attempts to estimate the diesel fuel demand function in Korea using panel data panel data of 16 major cities or provinces which consist of diesel demands, diesel market prices and gross value added from the year 1998 to 2015. I apply panel GLS(generalized least square) model, fixed effect model, random effect model and dynamic panel model to estimating the parameters of the diesel fuel demand function. The results show that short-run price elasticities of the diesel fuel demand are estimated to be -0.2146(panel GLS), -0.2886(fixed effect), -0.2854(random effect), -0.1905(dynamic panel) respectively. And short-run income elasticities of the diesel fuel demand are estimated to be 0.7379(panel GLS), 0.4119(fixed effect), 0.7260(random effect), 0.4166(dynamic panel) respectively. The short-run price and income elasticities explain that demand for diesel fuel is price- and income-inelastic. The long-run price and income elasticities are estimated to be -0.4784, 1.0461 by dynamic panel model, which means that demand for diesel fuel is price-inelastic but income-elastic in the long run. In addition I apply dummy variable model to estimate the effect of 16 major cities or provinces on diesel demands. The results show that diesel demands is affected 10 regions on the basis of Seoul.

• The Journal of Fisheries Business Administration
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• v.37 no.2 s.71
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• pp.85-109
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• 2006

This study is aimed to investigate the structure of world pollack markets and the position/competitiveness or Korea for WTO/NAMA Negotiation. First or all, it is clearly pointed out that many limitations and problems are inherent in FAO statistics that is widely utilized to investigate the structure of international seafood markets. Especially, it is impossible to find not only the data for Russia that is the top production and export country of pollack, but also the data for importing/exporting countries for pollack. In order to make up for these problems, the data for export and import of major countries are collected and analyzed. The results of analysis show the followings. First, it is clearly investigated that classification of fish products are different for countries. Second, it is understood the structure of international pollack market in actuality. The pollack market is segmented by frozen, fresh, dried, fillet, roe, surimi, etc. In addition, the pollack market has grown as much as 600,000 tons in amount and $1.2billion in value. Third, competitiveness of Korea in international pollack markets is measured quantitatively. It shows that Korea has low RAC index and TSI index, but high RMI index. Thus, it is identified that Korea becomes the largest pollack importing country. Fourth, the partial equilibrium analysis on pollack import market of Korea indicates that the frozen pollack has both price elasticity and substitution elasticity, while the fresh pollack has income elasticity.

• Journal of the military operations research society of Korea
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• v.35 no.2
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• pp.99-117
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• 2009

Energy is essential factor of production for a firm to produce goods and services. If so, what is the condition of maintaining profit of a firm when energy price is going up? In conclusion, the condition is that the rate of productivity improvement should be greater than the rate of energy price increase. To put this concretely, when the elasticity of energy price as to the productivity improvement is greater than the weight of the energy cost on to the total revenue of the firm, the firm can escape the negative effect of energy price increase. This is that, saying that once more, the firm have to reduce the energy cost or promote energy efficiency to maintain appropriate or sufficient profit when energy price is going up fast. Therefore, in this study we will analyze the effect of the oil price increase on the energy saving investment and that of energy saving investment on the energy efficiency in the field of Korean manufacturing industry. In doing so, this study could show that the effect of energy price increase on the energy efficiency of the firm and the factor of that mechanism.

• Journal of the Korea Convergence Society
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• v.12 no.12
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• pp.83-91
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• 2021

For agricultural products, supply is irregular due to changes in meteorological conditions, and it has high price elasticity. For example, if the supply decreases by 10%, the price increases by 50%. Due to these fluctuations in the prices of agricultural products, the Korean government guarantees the safety of prices to producers through small merchants' auctions. However, when prices plummet due to overproduction, protection measures for producers are insufficient. Therefore, in this paper, we designed a business model that can be used in the electronic transaction system by predicting the price of agricultural products with an artificial intelligence algorithm. To this end, the trained model with the training pattern pairs and a predictive model was designed by applying ARIMA, SARIMA, RNN, and CNN. Finally, the agricultural product forecast price data was classified into short-term forecast and medium-term forecast and verified. As a result of verification, based on 2018 data, the actual price and predicted price showed an accuracy of 91.08%.