• Journal of Korea Technology Innovation Society
• /
• v.14 no.3
• /
• pp.622-646
• /
• 2011

This paper analyses the effects of mobile telecommunications market's interconnection charge on consumer welfare between 2000 and 2010 by estimating price elasticity of demand with using log linear model and augmented Alexander et al(2000)'s model. The results show that consumer welfare is about 6 trillion won in 2009 and an upward trend. In the 2nd analysis, the decline in interconnection charge raise consumer welfare but, asymmetric interconnection and current TD-BU LRIC system have negative(-) relation with consumer welfare. Hence we need to revise interconnection policy frame.

• The Journal of the Convergence on Culture Technology
• /
• v.9 no.5
• /
• pp.493-499
• /
• 2023

Trade credit refers to a transaction where a product supplier allows an distributor to defer payment for a certain period of time for the purchase cost of the products. This practice is generally permitted as a means of differentiation between competing companies. Such trade credit is commonly granted based on the volume of transactions, aiming to increase customer orders. From the perspective of the distributor, trade credit allows for a deferred payment period for the purchase cost, leading to cost savings in inventory investment. These cost savings in inventory investment can be a factor in reducing selling prices with the aim of increasing customer demand. In this study, we analyze a model that determines the optimal selling price and order quantity from the perspective of the distributor, assuming that the supplier allows a deferred payment period dependent on the transaction volume. We assume that the final customer's annual demand exhibits an exponential decrease with respect to the distributor's selling price, using a constant price elasticity function. To analyze the problem, we assume that the product deteriorates at a constant rate over time and aim to establish an inventory model for the intermediate distributor. We also want to analyze the impact of deterioration on the inventory policies of the intermediate distributor.

• Asia-Pacific Journal of Business
• /
• v.10 no.2
• /
• pp.13-26
• /
• 2019

This paper aims to empirically examine the short-run and long-run aggregate demand for the US imports using quarterly economic data for the period 2000-2018 including aggregate imports, final expenditure components, gross fixed capital formation and relative price of imports. According to the results of both multivariate co-integration analysis and error correction model, the above variables are all cointegrated and significant differences are found to exist among the long-run partial elasticities of imports as regards different macro components of final expenditure. Partial elasticities with respect to government expenditure, gross fixed capital formation, exports and relative price of import are found to be positive while imports seems to respond negatively to changes in private consumption, implying that an increase in private consumption could result in a significant reduction in demand for imports in the long run. With regard to the relative import prices, the results appear to indicate a relatively insignificant influence on the aggregate imports in the US in the long run. However, an error correction model designed for predicting the short-term variability shows that only exports have an impact on the imports in the short run.

• Review of Culture and Economy
• /
• v.19 no.2
• /
• pp.29-50
• /
• 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 Digital Convergence
• /
• v.16 no.7
• /
• pp.1-8
• /
• 2018

In Korea, water supply capacity and facility investments had been emphasized around the 1980s. The water pricing have gained focuses in water policy since the 1990s. This study analyzes a water demand and estimates the relation of water demand and other socio-economic variable, using econometric models on the city of Busan. Water price and income are two key elements to explain water demand. Modeling approach using translog function provides better results, and water demand responds positively to population and income. Energy and water prices are negative factors in deciding water demand. It is requested that water pricing needs to reflect more production costs. Alternative approaches such as water saving facilities by household and use of digital water information should be emphasized for efficient water management in a local community.

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

• Journal of Korean Society of Forest Science
• /
• v.83 no.2
• /
• pp.133-147
• /
• 1994

Wastepaper recycling has significant implications not only in providing scarce raw material input for the paper industry but in environmental concerns such as reducing solid waste disposal, energy conservation and preservation of forest resources. The objectives of this study was (1) to develop an econometric model of demand for and supply of wastepaper, (2) to forecast wastepaper consumption and price to the year 2000 applying the econometric models estimated and (3) to estimate the elasticity of variables which are included in the wastepaper supply and demand equations. In this study wastepaper was classified into three groups, old newsprint, old corrugated and mixed For each group such as demand and supply equation were estimated. The demand equations were estimated as a function of paper and paper product consumption and wholesale price index and supply equations as a function of wastepaper price, one year lagged paper and paperproduct consumption and transportation price. Applying the econometric models to forcasting results in the future consumption and supply of wastepaper projected as 11.645 million MT and 7.396 million MT in 2000, respectively. The rate of wastepaper self-supply is forcasted about 63.5% in 2000. Especially, the rate of old neswprint self-supply is predicted about 16% which means about 2.2 million MT of old newsprint should be imported from foreign countries. Lastly, some policy measures to promote wastepaper recycling rate based upon economic and physical characteristics of wastepaper and market structure are suggested.

• The Journal of the Convergence on Culture Technology
• /
• v.6 no.2
• /
• pp.191-197
• /
• 2020

As an effective means of price discrimination, some suppliers offer trade credit to the distributors for the purpose of increasing the demand of 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. In this regard, we consider the problem of determining the distributor's optimal price and lot size simultaneously when the supplier permits delay in payments for an order of a product whose demand rate is represented by a constant price elasticity function. It is assumed that 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. For the analysis, it is also assumed that inventory is depleted not only by customer's demand but also by decay. We are able to develop a solution algorithm from the properties of the mathematical model. A numerical example is presented to illustrate the algorithm developed.

• Environmental and Resource Economics Review
• /
• v.24 no.4
• /
• pp.727-745
• /
• 2015

This paper analyzes the firms' optimization behavior in response to rising demand for non-priced renewable energy in the manufacturing industries by using an input distance function. The annual estimates of the shadow price of renewable energy is derived and the trend of its shadow price over time is analyzed. The degree of substitution of renewable energy for fossil-fuels is examined. The input-based Malmquist productivity index, defined as a composite of the technical efficiency and technical change measures, is measured. The contribution of renewable energy input growth to the Malmquist index is analyzed. Empirical results indicate that the shadow price of renewable energy declined at an average annual rate of 17% over the period 1992-2012. Substitutability between renewable energy and fossil-fuels was limited. On average, a 1% increase in renewable energy would decrease Malmquist index by 0.04% per year.

• Proceedings of the KIEE Conference
• /
• 2000.07a
• /
• pp.19-21
• /
• 2000

This paper presents a game theory application for analyzing power transactions and market design in a deregulated energy marketplace such as PoolCo. The conventional least-cost approaches for the generation resource schedule can not exactly handle recent real-world situations. A systematic tool using game theory for the market participants is presented such that it determines the net profits through the optimal bidding strategies including the strategies for the bidding prices and bidding generations. We treat this power transaction game as incomplete information one, which means each market participants does not know other's cost function. And the demand elasticity of the energy price is considered for the realistic modeling of the deregulated marketplace.