• Title/Summary/Keyword: Risk Preference

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OPTIMAL CONSUMPTION AND SLUTSKY EQUATION WITH EPSTEIN-ZIN TYPE PREFERENCE

  • Ahn, Se-Ryoong;Koo, Hyeng-Keun
    • Journal of the Korean Society for Industrial and Applied Mathematics
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    • v.16 no.2
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    • pp.107-124
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    • 2012
  • In this paper we conduct comparative statics for optimal consumption and portfolio selection of an agent who has a utility function of Epstein and Zin type. We derive the Slutsky equations and decompose the total effects of changes into the substitution effects and the income effects. We identify the role of the elasticity of intertemporal substitution and the coefficient of relative risk aversion.

Improvement of Urban Inundation Risk Evaluation (도심지 침수위험도 평가기법의 개선)

  • Song, yang-ho;Ryu, seung-hyun;Lee, jung-ho
    • Proceedings of the Korea Contents Association Conference
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    • 2012.05a
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    • pp.103-104
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    • 2012
  • 본 연구에서는 도시 소유역간 상대적 침수위험도 산정을 위하여 엔트로피(Entropy) 기법 및 다기준의사결정 방법의 하나인 프로메티(Preference Ranking Organization METHod for Enrichment Evaluations, PROMETHEE)를 적용하였다. 이에 따라 도시유역 침수위험도 산정과 관련된 항목 6개를 선정하여 평가기준으로 적용하였으며, 실제 도시유역에 적용 및 해당 유역의 과거 집중호우에 따른 침수이력과 비교하였다.

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Psychological Aspects of Household Debt Decision: The Use of the Heckman's Procedure

  • Lee, Jong-Hee
    • International Journal of Human Ecology
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    • v.9 no.1
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    • pp.81-95
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    • 2008
  • This paper examined the impact of psychological characteristics of consumers on household debt decisions. With the use of the Heckit models (the traditional approach to the selection problem) this study undertook an empirical study of the influence of a wide range of factors on financial decisions. This study used U.S. household-level data that offers detailed information on household debt, expectations about future income, expectations about future economic conditions, the amount of financial risk the respondent was willing to take, and the amount of time allotted for planning family savings and spending. This study showed that respondents with both substantial financial risk tolerance and positive expectations about future income were likely to have larger household debt showing that researchers and policy-makers need to consider consumer sentiment and preference measures in modeling behavior in credit markets. Additional results showed that household debt is significantly related to two key economic variables: income and net worth.

Recent clinical study of stroke patients (뇌졸중 환자의 최근 임상적 고찰)

  • Kim, Chan-Kyu;Oh, Myung-Hwa
    • Journal of Korean Physical Therapy Science
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    • v.9 no.1
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    • pp.177-182
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    • 2002
  • The purpose of this study is to present the tendency of stroke data on patients with stroke admitted to the hospital and to investigate the risk factors of stroke. We reviewed of 104 patients with stroke admitted to the hospital of from July 2001 to August 2001. The highest incidence of the stroke was noted in the group of 60 years of age with the rate of male(63.5%) to female(36.5%). The occurrence rate of ischemic stroke(51.9%) was higher than that of hemorrhagic stroke(48.1%). Middle cerebral arterial territory was the most commonly involved site cerebral arterial causes. The possible contributing factors of stroke were hypertension(52%), cigarette smoking(36.5%) and diabetes mellitus(18.3%). cardiac patients(16.3%). The seasonal preference was winter and autumn followed by summer and spring.

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A Basic Study on Financial Analysis Model Development by Applying Optimization Method in Residential Officetel. (최적화 기법을 활용한 주거형 오피스텔 프로젝트 수지 분석 모델 개발 기초연구)

  • Jang, Junho;Kim, Kyeong Ryoung;Ha, sungeun;Son, Kiyoung
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2018.05a
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    • pp.159-160
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    • 2018
  • The domestic construction industry is changing its preference for demand and supply along with urbanization and economic development. Accordingly, initial risk assessments is more important than before. Currently, the research related to risk analysis except for apartment studies is insufficient. Therefore, the objective is to suggest a basic study on financial analysis model development by applying optimization method in residential officetel. To achieve the objective. first, the previous studies are investigated. Second, the causal loop diagram is structured based on the collected data. Third, the financial model is developed by using optimization method. In the future, the proposed model can be helpful whether or not conduct execution of an officetel development project to the decision makers.

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Systematic Risk Factors Implied in the Return Dynamics of KOSPI 200 Index Options (KOSPI 200 지수(옵션)의 수익률생성과정에 내재된 체계적 위험요인)

  • Kim, Moo-Sung;Kang, Tae-Hun
    • The Korean Journal of Financial Management
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    • v.25 no.2
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    • pp.69-101
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    • 2008
  • We empirically investigate the option leverage property that should be priced under much more general conditions than the Black-Scholes assumptions and the option redundancy property that is based on the assumption that the underlying asset price follows a one-dimensional diffusion process and examine the systematic risk factors implied in the return dynamics of KOSPI 200 index options. We find that the option leverage pattern is similar to the theoretical result but the options are not redundant securities and in the nonlinear structure of option payoffs, the traders of KOSPI 200 index options price the systematic higher-moments and the negative volatility risk premium significantly affects delta-hedged gains, even after accounting for jump fears. But the empirical evidence on jump risk preference is less conclusive.

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How Enduring Product Involvement and Perceived Risk Affect Consumers' Online Merchant Selection Process: The 'Required Trust Level' Perspective (지속적 관여도 및 인지된 위험이 소비자의 온라인 상인선택 프로세스에 미치는 영향에 관한 연구: 요구신뢰 수준 개념을 중심으로)

  • Hong, Il-Yoo B.;Lee, Jung-Min;Cho, Hwi-Hyung
    • Asia pacific journal of information systems
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    • v.22 no.1
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    • pp.29-52
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    • 2012
  • Consumers differ in the way they make a purchase. An audio mania would willingly make a bold, yet serious, decision to buy a top-of-the-line home theater system, while he is not interested in replacing his two-decade-old shabby car. On the contrary, an automobile enthusiast wouldn't mind spending forty thousand dollars to buy a new Jaguar convertible, yet cares little about his junky component system. It is product involvement that helps us explain such differences among individuals in the purchase style. Product involvement refers to the extent to which a product is perceived to be important to a consumer (Zaichkowsky, 2001). Product involvement is an important factor that strongly influences consumer's purchase decision-making process, and thus has been of prime interest to consumer behavior researchers. Furthermore, researchers found that involvement is closely related to perceived risk (Dholakia, 2001). While abundant research exists addressing how product involvement relates to overall perceived risk, little attention has been paid to the relationship between involvement and different types of perceived risk in an electronic commerce setting. Given that perceived risk can be a substantial barrier to the online purchase (Jarvenpaa, 2000), research addressing such an issue will offer useful implications on what specific types of perceived risk an online firm should focus on mitigating if it is to increase sales to a fullest potential. Meanwhile, past research has focused on such consumer responses as information search and dissemination as a consequence of involvement, neglecting other behavioral responses like online merchant selection. For one example, will a consumer seriously considering the purchase of a pricey Guzzi bag perceive a great degree of risk associated with online buying and therefore choose to buy it from a digital storefront rather than from an online marketplace to mitigate risk? Will a consumer require greater trust on the part of the online merchant when the perceived risk of online buying is rather high? We intend to find answers to these research questions through an empirical study. This paper explores the impact of enduring product involvement and perceived risks on required trust level, and further on online merchant choice. For the purpose of the research, five types or components of perceived risk are taken into consideration, including financial, performance, delivery, psychological, and social risks. A research model has been built around the constructs under consideration, and 12 hypotheses have been developed based on the research model to examine the relationships between enduring involvement and five components of perceived risk, between five components of perceived risk and required trust level, between enduring involvement and required trust level, and finally between required trust level and preference toward an e-tailer. To attain our research objectives, we conducted an empirical analysis consisting of two phases of data collection: a pilot test and main survey. The pilot test was conducted using 25 college students to ensure that the questionnaire items are clear and straightforward. Then the main survey was conducted using 295 college students at a major university for nine days between December 13, 2010 and December 21, 2010. The measures employed to test the model included eight constructs: (1) enduring involvement, (2) financial risk, (3) performance risk, (4) delivery risk, (5) psychological risk, (6) social risk, (7) required trust level, (8) preference toward an e-tailer. The statistical package, SPSS 17.0, was used to test the internal consistency among the items within the individual measures. Based on the Cronbach's ${\alpha}$ coefficients of the individual measure, the reliability of all the variables is supported. Meanwhile, the Amos 18.0 package was employed to perform a confirmatory factor analysis designed to assess the unidimensionality of the measures. The goodness of fit for the measurement model was satisfied. Unidimensionality was tested using convergent, discriminant, and nomological validity. The statistical evidences proved that the three types of validity were all satisfied. Now the structured equation modeling technique was used to analyze the individual paths along the relationships among the research constructs. The results indicated that enduring involvement has significant positive relationships with all the five components of perceived risk, while only performance risk is significantly related to trust level required by consumers for purchase. It can be inferred from the findings that product performance problems are mostly likely to occur when a merchant behaves in an opportunistic manner. Positive relationships were also found between involvement and required trust level and between required trust level and online merchant choice. Enduring involvement is concerned with the pleasure a consumer derives from a product class and/or with the desire for knowledge for the product class, and thus is likely to motivate the consumer to look for ways of mitigating perceived risk by requiring a higher level of trust on the part of the online merchant. Likewise, a consumer requiring a high level of trust on the merchant will choose a digital storefront rather than an e-marketplace, since a digital storefront is believed to be trustworthier than an e-marketplace, as it fulfills orders by itself rather than acting as an intermediary. The findings of the present research provide both academic and practical implications. The first academic implication is that enduring product involvement is a strong motivator of consumer responses, especially the selection of a merchant, in the context of electronic shopping. Secondly, academicians are advised to pay attention to the finding that an individual component or type of perceived risk can be used as an important research construct, since it would allow one to pinpoint the specific types of risk that are influenced by antecedents or that influence consequents. Meanwhile, our research provides implications useful for online merchants (both online storefronts and e-marketplaces). Merchants may develop strategies to attract consumers by managing perceived performance risk involved in purchase decisions, since it was found to have significant positive relationship with the level of trust required by a consumer on the part of the merchant. One way to manage performance risk would be to thoroughly examine the product before shipping to ensure that it has no deficiencies or flaws. Secondly, digital storefronts are advised to focus on symbolic goods (e.g., cars, cell phones, fashion outfits, and handbags) in which consumers are relatively more involved than others, whereas e- marketplaces should put their emphasis on non-symbolic goods (e.g., drinks, books, MP3 players, and bike accessories).

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A Study on the Contents and Consumers' Recognition of Clothing Product Evaluation Statements in the Internet Apparel Shopping Mall (인터넷 쇼핑몰의 의류 상품평 내용과 소비자 인식에 관한 연구)

  • Choi Eun-Young
    • The Research Journal of the Costume Culture
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    • v.12 no.6 s.53
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    • pp.984-998
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    • 2004
  • The purpose of this study was to analyze contents of clothing product evaluation statements in the internet shopping mall and to discover consumers' recognition and evaluation of it. The data were collected from 151 consumers' statements in the four internet apparel shopping malls and a questionnaire was developed to measure consumers' recognition of clothing product evaluation statements. The questionnaire was administrated 272 consumers over 18 years old. The results of this study were as follows; First, The contents of clothing product evaluation statements in the internet shopping blog, were divided into three categories which were product, service and consumer buying decision process. Product category include evaluation of clothing product, description of difference between real product and product on the screen, and advice of uses. Service category include quickness and kindness in delivery, store preference for good service. For consumer buying decision process, motivation of purchasing, perceived risk, expression of satisfaction from good buying and canvassing for purchasing were included. Second, consumer recognized that clothing product evaluation statements has function of furnishing information, confirmation of purchasing decision, risk reduction of internet shopping, and interesting entertainment. Consumers also were dependent on product evaluation statements for making purchasing decision. And it was trusted by consumers. This recognition & evaluation were correlated with consumer's clothing product knowledge, involvement, risk perception of internet shopping, experiences of internet shopping. Managerial implications are provided for internet shopping mall.

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The Influence of Aesthetic Surgery Attitude, Self-Esteem and Body Image on Clothing Behavior (성형태도, 자아존중감, 신체이미지와 의복행동간의 관계)

  • Chung, Mi-Sil;Lee, Keum-Sil
    • Journal of the Korean Home Economics Association
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    • v.45 no.7
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    • pp.131-140
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    • 2007
  • The purpose of this study was to examine the influence of aesthetic surgery attitude, self-esteem and body image on clothing behavior. Subjects were 356 female college students in Seoul. The data obtained were analyzed by reliability analysis, factor analysis, correlation analysis, stepwise multiple regression analysis and t-test. The major results of this study were as follows: First, five factors of aesthetic surgery attitude were identified: risk tolerance of aesthetic surgery, need of aesthetic surgery, image improvement via aesthetic surgery, keeping the secret of aesthetic surgery, and others' expectation of aesthetic surgery. Second, significant relationships were found between body image and clothing behavior, and self-esteem and body-enhancement of clothing. Also, risk tolerance of aesthetic surgery, need of aesthetic surgery, and image improvement via aesthetic surgery had a significant correlation with clothing behavior. Third, the most important variable which affected the aesthetics and body-enhancement of clothing was body image. The entertainer imitation behavior of clothing was influenced by need of aesthetic surgery, body image, keeping the secret of aesthetic surgery, risk tolerance of aesthetic surgery, and image improvement via aesthetic surgery. Preference for luxury goods of clothing was influenced by need of aesthetic surgery and body image. Body-enhancement of clothing was influenced by body image, image improvement via aesthetic surgery, and self-esteem.

Exploring CRM through Technology-enabled Experience in Virtual Environment: The Era of COVID-19

  • HAN, Seung Yeon;CHO, Yooncheong
    • The Journal of Industrial Distribution & Business
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    • v.13 no.4
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    • pp.1-14
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    • 2022
  • Purpose: The purpose of the study is to explore the application of Augmented Reality (AR) technology to enhance interactivity and decision making via technology-enabled experience particularly, in the context of COVID-19. This study investigated effects of perceived utilitarian value, hedonic value, social value, and perceived risk on customer satisfaction with AR technology that are rarely examined in previous studies. Research design, data and methodology: Online survey data was used in the study. This study applied factor analysis and regression analysis to test the hypotheses and employed ANOVA and mediation effect analysis to explore additional findings. Results: The results suggested that customers' perceived usefulness, arousal, social preference, innovativeness, financial risk, and performance risk have statistically significant effect on customer satisfaction. Conclusions: The findings of the study provided managerial and policy implications to develop and advertise the introduction of AR technology with the emphasis on the practical and utilitarian benefits of the technology. The result of this study highlighted the importance of customer relationship management by providing advanced services to customers through AR technology. This study contributes to technology-enabled CRM literature by providing the empirical result to verify the assumption that AR technology can be an effective tool of firms' CRM strategy