• Proceedings of the KIEE Conference
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• 2000.07a
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• pp.13-15
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• 2000

This paper suggests the optimal dispatch method by MLF, that gives the appropriate price signal considering power flow and system losses under zonal pricing market. This price signal with MLF effects to dispatch merit order and customer price in the short term, and to connection point of new plant in the long term. In the case study, optimal MLF dispatch method applied to simplified Korean power system. The result shows reduction of loss and northward flow.

• 한국신재생에너지학회:학술대회논문집
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• 2006.06a
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• pp.343-346
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• 2006

Although renewable energy sources are more environmentally friendly than fossil energy sources, it is far more costly, considering current technological standards. It would not present many competitive advantages in the power market. If the renewable electricity is viable in the market, the government should take 'visible' actions to compensate production costs. Popular policies, such as Feed-In-Tariff and Renewable Portfolio Standards, can help to attract investors into generators of renewable electricity. But presently, they are mainly financed through a undifferentiated increase of electricity bills and occasionally confronted with the opposition of the electricity consumers. And most policies tend to focus on increasing the supply of renewable electricity with little consideration toward elevating the motivation of consumers. This study evaluates the potential of environmentally friendly energy consumption and examines the 'green pricing' program which realize the potential.

• Journal of Korea Society of Industrial Information Systems
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• v.18 no.1
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• pp.81-89
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• 2013

The purpose of this study is to analyze the information effect about the pricing using the ETF price, the benchmark index, and the total tracking error between the ETF price and the benchmark index on the index ETF market and sector ETF markets. Furthermore, the total tracking error is distinguished between the market tracking error and the NAV tracking error. Summary of this study are as follows: First, While KODEX200 don't have impact factors on the price, the most sectors of ETF have the factors affecting the pricing decision. They are the day before the total tracking error or market tracking error. Second, for the ETF price of the most industry, we find that the day before the market tracking error have the price discovery function because it is a negative(-) coefficients. But NAV tracking error could not find such a feature. Finally, the sector ETF price of energy chemical, construction, IT, and semiconductor industries affected of the day before positive(+) impact by the benchmark index price.

• KIEE International Transactions on Power Engineering
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• v.4A no.4
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• pp.243-253
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• 2004

As deregulation evolves, pricing electricity becomes a major issue in the electric power industry. Participants in the competitive marketplace are able to improve their profits substantially by effectively pricing the electricity. In this paper, game theory is applied to analyze price-clearing in the generation bidding competition with the competition modeled as the non-cooperative and complete information game. The result of this analysis can be useful in understanding spot price-clearing of electricity as well as GENCOs' strategic behavior in the competitive electricity market.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.29 no.10B
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• pp.866-879
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• 2004

This paper presents a pricing model for maximizing a service provider's profit, taking into account consumers' quality-of-service dependent willingness to pay, in integrated voice/data mobile services. For the voice and the data services, time-sensitive pricing and volume-sensitive pricing mechanism will be applied, respectively, as in the case of Korea's mobile service market. Assuming that consumers are very sensitive to call interruption during handoff moments, the model presented here considers reserving guard channels exclusively for handoff traffic, in the process of frequency channels allocation, as well as guaranteeing consumers quality of service regarding call interruption rate. Ultimately, this model proposes a means to guarantee the quality of service in the short term, through pricing strategies as well as channel allocation policies, and the simulation results show that without expanding system resources, there exists a trade-off between profit and quality-of-service guarantee.

• Journal of the Korean Operations Research and Management Science Society
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• v.10 no.2
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• pp.1-14
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• 1985

This problem of product selection and princing are considered in congested and uncongested markets. In a congested market, such as a computer service market, product quality (the level of congestion) is partly a function of the amount of usage, which in turn depands on user choice. In an uncongested market, product qualities are set solely by providers. A model of quality and capacity variation is developed using a state equation description to represent user optimizing behavior. The model is used to study the problem of scarce resources among competing user demands through quality-dependent pricing.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.55 no.8
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• pp.341-350
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• 2006

This paper presents a new methodology to draw the components of locational marginal price (LMP) in electricity market. Recently, the changing environments surrounding electricity industries resulted in the unbundled services provided by electricity market players, which may require the new pricing mechanisms based on the LMP. The changed pricing mechanisms will provide the price signals of time and location to the market participants. Most of the existing studies of LMP are based on the Lagrangian multipliers as shadow prices to evaluate the equivalent values of constraints or factors for security, reliability and quality. However, the shadow prices cannot provide enough information for components of LMP. In this paper, therefore, we proposed a new approach that LMP is divided into three components. To do this, we first present the method for shadow prices calculation and then break down LMP into a variety of parts corresponding to the concerned factors. The proposed approach is applied to 5-bus and modified IEEE 14-bus sample system in order to verify its validity.

• Journal of Distribution Science
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• v.13 no.5
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• pp.71-82
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• 2015

Purpose - The purpose of this study is to investigate risk price implied from the pricing kernel of Korean stock distribution market. Recently, it is considered that the quantitative easing programs of major developed countries are contributing to a reduction in global uncertainty caused by the 2007~2009 financial crisis. If true, the risk premium as compensation for global systemic risk or economic uncertainty should show a decrease. We examine whether the risk price in the Korean stock distribution market has declined in recent years, and attempt to provide practical implications for investors to manage their portfolios more efficiently, as well as academic implications. Research design, data and methodology - To estimate the risk price, we adopt a non-parametric method; the minimum norm pricing kernel method under the LOP (Law of One Price) constraint. For the estimation, we use 17 industry sorted portfolios provided by the KRX (Korea Exchange). Additionally, the monthly returns of the 17 industry sorted portfolios, from July 2000 to June 2014, are utilized as data samples. We set 120 months (10 years) as the estimation window, and estimate the risk prices from July 2010 to June 2014 by month. Moreover, we analyze correlation between any of the two industry portfolios within the 17 industry portfolios to suggest further economic implications of the risk price we estimate. Results - According to our results, the risk price in the Korean stock distribution market shows a decline over the period of July 2010 to June 2014 with statistical significance. During the period of the declining risk price, the average correlation level between any of the two industry portfolios also shows a decrease, whereas the standard deviation of the average correlation shows an increase. The results imply that the amount of systematic risk in the Korea stock distribution market has decreased, whereas the amount of industry-specific risk has increased. It is one of the well known empirical results that correlation and uncertainty are positively correlated, therefore, the declining correlation may be the result of decreased global economic uncertainty. Meanwhile, less asset correlation enables investors to build portfolios with less systematic risk, therefore the investors require lower risk premiums for the efficient portfolio, resulting in the declining risk price. Conclusions - Our results may provide evidence of reduction in global systemic risk or economic uncertainty in the Korean stock distribution market. However, to defend the argument, further analysis should be done. For instance, the change of global uncertainty could be measured with funding costs in the global money market; subsequently, the relation between global uncertainty and the price of risk might be directly observable. In addition, as time goes by, observations of the risk price could be extended, enabling us to confirm the relation between the global uncertainty and the effect of quantitative easing. These topics are beyond our scope here, therefore we reserve them for future research.

• Management & Information Systems Review
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• v.26
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• pp.1-26
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• 2008

Since Capital Asset Pricing Model(CAPM) was proposed in the early 1960s by William Sharpe(1964) and John Lintner(1965) researchers have investigated the validity of the model. The results of empirical researches do not show that expected returns of stocks seem to be determined solely by systematic risk of the stocks as precicted by CAPM. In this paper the relationship between transaction volume and expected returns of stocks was investigated. Empirical cross-sectional analysis about the data collected from Stock Market of Korea Exchange shows transaction volume and variability of stock returns play an important role in pricing assets. The well-known variables which were used traditionally to explain the differences of expected returns among stocks such as the size and beta of a stock seems to be unimportant in pricing assets.

• Proceedings of the KIEE Conference
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• 2003.07a
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• pp.652-654
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• 2003

Embedded cost pricing is easy to be applied in the calculation of transmission cost and guarantees perfect recovery of revenue requirement. However, it caused in equity of cost distribution in the restructured electrical market. Though, marginal cost pricing has been studied to be applied to economic signal of members. But it has the cumbersome processes of the revenue reconciliation. This paper presents a new recovery of revenue requirement method that is satisfied with economic signal, using MLF.