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Chinese Socialism and Nationalism (중국식 사회주의와 민족주의)

  • Cho, Bonglae
    • The Journal of Korean Philosophical History
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    • no.27
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    • pp.223-254
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    • 2009
  • This thesis is aimed at researching the formation of democracy in socialist China. Due to a sense of cultural superiority on the basis of their developed civilization, they already formed a strong cultural nationalism, which has come to firm up into "Sinocentrism" through long periods of time. However, there arose a sense of crisis due to the Western invasion after the Opium War and the intellectuals in China happened to seek the solution to rescuing their mother land from ruin; in the midst of this process, the theory of social evolution of the West was introduced and accepted. The acceptance of this theory of social evolution gradually transformed in confrontation with a logical limit that China defeated in international competition could not but be plundered by imperialism after all, but it contributed to Chinese intellectuals' forming the concept of the modern state nationalism of the West deviating from cultural Sinocentrism. After the Russian Revolution, a large number of Chinese progressive intellectuals developed their socialist movement with the recognition that Marxism was a practicable alternative to rescue China from its crisis. The Chinese Communist Party was under guidance of the Comintern from the early process of its formation, in which they emphasized the fact the national liberation struggle in colonialized countries was an indispensable element in the world communist movement under the condition of the control of the world by imperialist capital at that time and subsequently, Marxism characterized by resistant nationalism in China gained its cause. Afterwards, the People's Republic of China was established by the Chinese Communists which came to get widespread support from the Chinese through anti-imperialism &feudalism in the process of the Sino-Japanese War, and thus China equipped with a full-blown socialism system set sails. However, with the relations with the Soviet Union getting worse under the international conditions of a cold war, the development of the Chinese socialism couldn't but resort to the concentrated power of its people, which was linked to the boost of continuous patriotism of the Chinese Communists. Particularly, due to the newly-emerging contradictions after reform & opening [gig kifng], China underwent disruption; thus, as an ideology to integrate such disruptive elements, Sinocentrism based on China's cultural pride re-appeared. Recently, a very strong form of Sinocentrism has come to the fore as their superiority of traditional cultures is emphasized in China whose international position as an economic power has been raised.

A METHOD OF CAPABILITY EVALUATION FOR KOREAN PADDY SOILS -Part 2. The rice yield prediction by soil fertility constituents and other characters (한국(韓國) 답토양(畓土壤)의 생산력(生産力) 평가방법에 관한 연구 -2 보(報)·비옥도(肥沃度) 구성인자(構成因子) 및 기타(其他) 특성(特性)에 의(依)한 쌀수확량(收穫量)의 추정(推定))

  • Hong, Ki-Chang;Maeng, Do-Won;Kazutake, Kyuma;Hisao, Furukawa;Suh, Yoon-Soo
    • Korean Journal of Soil Science and Fertilizer
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    • v.12 no.1
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    • pp.15-23
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    • 1979
  • In the first paper of the series the five soil fertility factors were evaluated by means of principal component analysis and varimax method. They are interpreted as representing, 1) skeletal available phosporus status, 2) organnic matter status, 3) salt status 4) base status, and 5) free oxide status. In order to resynthesize such fragmented information for the overall soil fertility evaluation, the method of multiple regression analysis was adopted, using the five factor scores and yield data for Korean paddy soils as independent and dependent variables respectively. As test of linear models with different combinations of independent variables the results of t-test of regression coefficient were revealed that the organic matter status (FII) has no relevance to the yield of paddy and that the free oxides and salt supply has by it self only an insignificant contribution to the yield. The multiple correlation coefficient (R) revealed its multiple regression analysis was as low as 0.43. Introduction of quadratic terms to the linear model bettered the result. Thus multiple correlation coefficient (R) was increased as 0.59. Therefore, a coefficient of determination 0.35 was obtained by a quadratic model with interaction terms among the five fertility constituents. Generally we think that the fertility factor has more contribution to raise the rice yield in paddy and that the failure of yield prediction by fertility factor scores was caused by one of follows; 1) the roughness of the yield inspection, and 2) missextraction of fertility constituents. The second step in this study, assuming that the residuals by multiple regression analysis were due to factors other than soil fertility, we can now proceed to predicting the yield from the field characters with the classified fertility groups by means of Hayashi's theory of quantification No. 1. Such variables as fertility groups (FTYG), water availability (WATER), soil drainage (DRNG), climatic zone (CLIZ), surface soil's stickiness (STCKT), surface soil's dry consistence (DCNST), and surface soil's texture (FTEXT) are taken up as the explanatory variables. The quantification appears reasonable; the well to extremely well in soil drainage, very sticky of surface soil, inefficiency in water availability, coarse texture, and very hard to extremely hard dry consistence in soil are detrimental to the rice yield. The R was as high as 0.90 for the set of variables. But the given explanatory variables in this study were not quite effective in explaining rice yield. The method developed seems to be promising only if properly collected data are available. Conditions that should be satisfied in the yield inspection obtained from common cultivator for the purpose of deriving a prediction equation were put forward.

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The Reserch on Actual Condition of Crime of Arson Which Occurs in Korea and Its Countermeasures (방화범죄의 실태와 그 대책 - 관심도와 동기의 다양화에 대한 대응 -)

  • Choi, Jong-Tae
    • Korean Security Journal
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    • no.1
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    • pp.371-408
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    • 1997
  • This article is the reserch on actual condition of crime of arson which occurs in Korea and its countermeasures. The the presented problem in this article are that (1) we have generally very low rate concern about the crime of arson contrary to realistic problems of rapid increase of crime of arson (2) as such criminal motives became so diverse as to the economic or criminal purpose unlike characteristic and mental deficiency of old days, and to countermeasure these problems effectively it presentation the necessity of systemantic research. Based on analysis of reality of arson, the tendency of this arson in Korea in the ratio of increase is said to be higher than those in violence crime or general fire rate. and further its rate is far more greater than those of the U.S.A. and Japan. Arson is considered to be a method of using fire as crime and in case of presently residence to be the abject, it is a public offense crime which aqccompany fatality in human life. This is the well It now fact to all of us. And further in order to presentation to the crime of arson, strictness of criminal law (criminal law No, 164 and 169, and fire protection law No. 110 and 111) and classification of arsonist as felony are institutionary reinforced to punish with certainty of possibility, Therefore, as tendency of arson has been increased compared to other nations, it is necessary to supplement strategical policy to bring out overall concerns of the seriousness of risk and damage of arson, which have been resulted from the lack of understanding. In characteristics analysis of crime of arson, (1) It is now reveald that, in the past such crime rate appeared far more within the boundary of town or city areas in the past, presently increased rate of arsons in rural areas are far more than in the town or small city areas, thereby showing characteristics of crime of arson extending nation wide. (2) general timetable of arson shows that night more than day time rate, and reveald that is trait behavior in secrecy.(3) arsonists are usually arrested at site or by victim or report of third person(82,9%).Investigation activities or self surrenders rate only 11.2%. The time span of arrest is normally the same day of arson and at times it takes more than one year to arrest. This reveals its necessity to prepare for long period of time for arrest, (4) age rate of arson is in their thirties mostly as compared to homicide, robbery and adultery, and considerable numbers of arsons are in old age of over fifties. It reveals age rate is increased (5) Over half of the arsonists are below the junior high school (6) the rate of convicts by thier records is based on first offenders primarily and secondly more than 4 time convicts. This apparently shows necessity of effective correctional education policy for their social assimilation together with re-investigation of human education at the primary and secondary education system in thier life. The examples of motivation for arosnits, such as personal animosity, fury, monetary swindle, luscious purpose and other aims of destroying of proof, and other social resistance, violence including ways of threatening, beside the motives of individual defects, are diverse and arsonic suicide and specifically suicidal accompany together keenly manifested. When we take this fact with the criminal theory, it really reveals arsons of crime are increasing and its casualities are serious and a point as a way of suicide is the anomie theory of Durkheim and comensurate with the theory of that of Merton, Specifically in the arson of industrial complex, it is revealed that one with revolutionary motive or revolting motive would do the arsonic act. For the policy of prevention of arsons, professional research work in organizational cooperation for preventive activities is conducted in municipal or city wise functions in the name of Parson Taskforces and beside a variety of research institutes in federal government have been operating effectively to countermeasure in many fields of research. Franch and Sweden beside the U.S. set up a overall operation of fire prevention research funtions and have obtained very successful result. Japan also put their research likewise for countermeasure. In this research as a way of preventive fire policy, first, it is necessary to accomodate the legal preventitive activities for fire prevention in judicial side and as an administrative side, (1) precise statistic management of crime of arson (2) establishment of professional research functions or a corporate (3) improvement of system for cooperative structural team for investigation of fires and menpower organization of professional members. Secondly, social mentality in individual prospect, recognition of fires by arson and youth education of such effect, educational program for development and practical promotion. Thirdly, in view of environmental side, the ways of actual performance by programming with the establishment of cooperative advancement in local social function elements with administrative office, habitants, school facilities and newspapers measures (2) establishment of personal protection where weak menpowers are displayed in special fire prevention measures. These measures are presented for prevention of crime of arson. The control of crime and prevention shall be prepared as a means of self defence by the principle of self responsibility Specifically arsonists usually aims at the comparatively weak control of fire prevention is prevalent and it is therefore necessary to prepare individual facilities with their spontaneous management of fire prevention instead of public municipal funtures of local geverment. As Clifford L. Karchmer asserted instead of concerns about who would commit arson, what portion of area would be the target of the arson. It is effective to minister spontaveously the fire prevention measure in his facility with the consideration of characteristics of arson. On the other hand, it is necessary for the concerned personnel of local goverment and groups to distribute to the local society in timely manner for new information about the fire prevention, thus contribute to effective result of fire prevention result. In consideration of these factors, it is inevitable to never let coincide with the phemonemon of arsons in similar or mimic features as recognized that these could prevail just an epedemic as a strong imitational attitude. In processing of policy to encounter these problems, it is necessary to place priority of city policy to enhancement of overall concerns toward the definitive essense of crime of arson.

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Pareto Ratio and Inequality Level of Knowledge Sharing in Virtual Knowledge Collaboration: Analysis of Behaviors on Wikipedia (지식 공유의 파레토 비율 및 불평등 정도와 가상 지식 협업: 위키피디아 행위 데이터 분석)

  • Park, Hyun-Jung;Shin, Kyung-Shik
    • Journal of Intelligence and Information Systems
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    • v.20 no.3
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    • pp.19-43
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    • 2014
  • The Pareto principle, also known as the 80-20 rule, states that roughly 80% of the effects come from 20% of the causes for many events including natural phenomena. It has been recognized as a golden rule in business with a wide application of such discovery like 20 percent of customers resulting in 80 percent of total sales. On the other hand, the Long Tail theory, pointing out that "the trivial many" produces more value than "the vital few," has gained popularity in recent times with a tremendous reduction of distribution and inventory costs through the development of ICT(Information and Communication Technology). This study started with a view to illuminating how these two primary business paradigms-Pareto principle and Long Tail theory-relates to the success of virtual knowledge collaboration. The importance of virtual knowledge collaboration is soaring in this era of globalization and virtualization transcending geographical and temporal constraints. Many previous studies on knowledge sharing have focused on the factors to affect knowledge sharing, seeking to boost individual knowledge sharing and resolve the social dilemma caused from the fact that rational individuals are likely to rather consume than contribute knowledge. Knowledge collaboration can be defined as the creation of knowledge by not only sharing knowledge, but also by transforming and integrating such knowledge. In this perspective of knowledge collaboration, the relative distribution of knowledge sharing among participants can count as much as the absolute amounts of individual knowledge sharing. In particular, whether the more contribution of the upper 20 percent of participants in knowledge sharing will enhance the efficiency of overall knowledge collaboration is an issue of interest. This study deals with the effect of this sort of knowledge sharing distribution on the efficiency of knowledge collaboration and is extended to reflect the work characteristics. All analyses were conducted based on actual data instead of self-reported questionnaire surveys. More specifically, we analyzed the collaborative behaviors of editors of 2,978 English Wikipedia featured articles, which are the best quality grade of articles in English Wikipedia. We adopted Pareto ratio, the ratio of the number of knowledge contribution of the upper 20 percent of participants to the total number of knowledge contribution made by the total participants of an article group, to examine the effect of Pareto principle. In addition, Gini coefficient, which represents the inequality of income among a group of people, was applied to reveal the effect of inequality of knowledge contribution. Hypotheses were set up based on the assumption that the higher ratio of knowledge contribution by more highly motivated participants will lead to the higher collaboration efficiency, but if the ratio gets too high, the collaboration efficiency will be exacerbated because overall informational diversity is threatened and knowledge contribution of less motivated participants is intimidated. Cox regression models were formulated for each of the focal variables-Pareto ratio and Gini coefficient-with seven control variables such as the number of editors involved in an article, the average time length between successive edits of an article, the number of sections a featured article has, etc. The dependent variable of the Cox models is the time spent from article initiation to promotion to the featured article level, indicating the efficiency of knowledge collaboration. To examine whether the effects of the focal variables vary depending on the characteristics of a group task, we classified 2,978 featured articles into two categories: Academic and Non-academic. Academic articles refer to at least one paper published at an SCI, SSCI, A&HCI, or SCIE journal. We assumed that academic articles are more complex, entail more information processing and problem solving, and thus require more skill variety and expertise. The analysis results indicate the followings; First, Pareto ratio and inequality of knowledge sharing relates in a curvilinear fashion to the collaboration efficiency in an online community, promoting it to an optimal point and undermining it thereafter. Second, the curvilinear effect of Pareto ratio and inequality of knowledge sharing on the collaboration efficiency is more sensitive with a more academic task in an online community.

EU Integration and Its Aviation Relationship with Third Countries (유럽연합(EU) 통합과 제3국과의 항공관계)

  • Lee, Jong-Sik
    • The Korean Journal of Air & Space Law and Policy
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    • v.21 no.1
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    • pp.135-167
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    • 2006
  • Air service agreements between EU Member States and third countries concluded by Sweden, Finland, Belgium, Luxembourg, Austria, the Netherlands, Denmark and the United Kingdom after the Second World War infringe EU law. They authorize the third countries to withdraw, suspend or limit the traffic rights of air carriers designated by the signatory States. According to the Court of Justice of the European Communities (CJEC), these agreements infringe EU law in two respects. On the one hand, the presence of nationality clauses infringes the right of European airlines to non-discriminatory market access to routes between all Member States and third countries. On the other hand, only the EU has the authority to sign up to this type of commitment where agreements affect the exercise of EU competence, i.e. involve an area covered by EU legislation. The Court held that since the third countries have the right to refuse a carrier, these agreements therefore constitute an obstacle to the freedom of establishment and freedom to provide services, as the opening of European skies to third countries' companies is not reciprocal for all EU airlines. In the conclusion, in order to reconstruct these public international air law, The new negotiations between EU member states and third countries, especially the US, must be designed to ensure an adequate set of principles, so that Member States, in their bilateral relations with third countries in the area of air service, should consider following three models. The 1st, to develop a new model of public international air law such as a new Bermuda III. The 2nd, to reconstruct new freedoms of the air, for example, the 7th, 8th, and 9th freedoms. The 3rd, to explore new approaching models, such as complex system theory explored in the recent social sciences, to make access world-wide global problems instead of bilateral problems between EU member states and United States. The example will show any lessons to air talks between European Union and ROK.

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An Exploration of the Influencing Factors and Development of Effective Models of Science Teacher Efficiency (과학 교사의 효능감 관련 요인 탐색을 통한 과학 교사 효능감 형성 모형 개발)

  • Choi, Sung-Youn;Kim, Sung-Won
    • Journal of The Korean Association For Science Education
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    • v.30 no.6
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    • pp.693-718
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    • 2010
  • This study investigated secondary school science teachers' experiences to explore the influencing factors in science teachers efficiency (STE). The participants, thirty three secondary school science teachers who have more than four years of teaching experience, were interviewed about describing each teacher's experience throughout one's years of teaching. The grounded theory introduced by Strauss and Corbin (1998) was used to analyze the data in this study. The results of paradigm analysis revealed that STE is influenced by 125 concepts, 38 sub-categories, and 16 categories. In a paradigm model, the central phenomenon was 'constructing STE', and the causal condition was 'want to be a teacher' as career choice motivation. The contextual conditions that have an affect on the central phenomenon were 'self awareness of the teacher' and 'social awareness of the teacher.' The mediate conditions, which facilitated or restrained the action/interaction strategies, were 'societal tendency', 'school climate', and 'personal context.' The action/interaction strategies to control the phenomenon were 'following the line,' 'identifying effective teaching strategies,' 'taking teacher education programs,' and 'contributing to school improvement.' The consequences were 'teacher's self awareness', 'challenge,' and 'stagnating in teaching.' The overall conclusion drawn from this research is that, the definition of STE is beliefs in science teachers' capabilities to set up objects in some school teaching context and, organize and execute the course of action required to attain these. Additionally, STE has three dimensions of teacher's behaviors: science instructional efficiency, efficiency in engaging students, and efficiency in managing school conditions. This study offers insight into the nature of STE and theoretical framework. These findings may give science teachers and teacher educators the practical knowledge necessary to build effective training programs and interventions that would help increase STE and facilitate effective teaching.

Research on Classifying the 'Sijochang', or Korean Ode Narrative Song (시조창 분류고)

  • Shin Woong-Soon
    • Sijohaknonchong
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    • v.24
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    • pp.223-258
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    • 2006
  • This Research is about the classification of 'Sijochang', or the Korean ode narrative song, in terms of music. Contrary to the literature classification by the number of letters, sijochang varies with the melody. Literally, the classification is generally made as Dansijo(or short ode) Jungsijo(or medium ode) and Jangsijo(or lengthy ode) but the sijochang is normally divided into 'Pyongsijo' (or plain ode), 'Jirumsijo and Saseolsijo'. As while the same Sijochang is called under the different names, the different type of sijochang is also called as the same name, it needs the discussion about its name. Some Korean classical musicians have attempted to define it but they are trying to do it without the specific reasoning about its concept. As a result, the systematic research is required. This study designs to streamline the currently confusing and complex names and set up the sijo's classification system. After reviewing the ancient music note, current sijo score and the traditional theory, I largely classified it into 3 types: Pyongsijo, Jirumsijo and Saseolsijo. And then, 1 analyzed on to which type the sijochang which is presently called belongs, based on several principles. The 67 names of the sijo which I have investigated about are classified with them sharpy reduced into 16. Among the current sijo names. there are some which are of same type yet of different phonetics and there are others which are of different phonetics yet of same type. To avoid such complex and troublesome names, I have orchestrated them as follows, taking the literary and music concept into account. 1) Pyongsijo type : Pyongsijo, Joongherisijo, Wujosijo and Payeonkok 2) Jirumsijo type: Jirumsiro, Namchangjirumsijo(it refers to Jirumsijo sung by male ), Yeochangjirumsijo (it refers to Jirumsijo sung by female), Banjirumsijo(it refers to half the Jiumsiro), Onjirumsijo (it refers to the whole Jirumsijo), Wujojr\irumsijo, Saseoljirumsijo and Whimorisijo) 3) Saseolsijo type : Saseolsijo, Bansaseolsijo(it refers to half the Saseolsijo, Gaksijo or Pyongsiro There are still lots of things to musically streamline, in the fields of disposition of Sijo letters, its form, musical scale and influences on other genre. etc. and as such. the accumulation of theory on them is urgently required. Those musical elements need an in-depth review and study by the experts and the Korean traditional musicians. Later research is expected to play a role of exploring it.

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An Analysis of the Inherent Fear and Desire of the Character: Based on the Enneargram Personality Types Theory (<니모를 찾아서> 캐릭터에 내재된 두려움과 욕망 분석: 에니어그램 성격유형론에 근거하여)

  • Yang, Se-Hyeok
    • Cartoon and Animation Studies
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    • s.29
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    • pp.1-36
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    • 2012
  • The (2003) by Pixar, by succeeding at box office hit with good criticism, could be the film that made Pixar the most influential animation producer. Especially such character oriented narrative strategy, by raising the degree of characterizing and relationship, could made remarkable achievement as it is called a textbook of characterizing. This study focused on the inherent fear and desire of characters in . The inherent fear and desire were assumed to be the elements that strengthen characterizing and relationship more dynamically. In general, every single choice and behavior of human beings are likely to be depending on fear and desire, it is believed that human's life is dominated by those two elements. In this point, the characterizing of has three big features. It is that (1) it clearly described the fear inherent in characters and the effort to avoid the fear better than any other films of Pixar. (2) it strikingly accords with the interaction of characteristics of fear and desire established by Enneargram personality types. (3) the way of relieving fear of the main characters (Marlin and Nemo), as a unique feature of rescue and escape plot in which two characters are being apart, is not by interaction of characteristics of two main characters but is by characterizing the spiritual value supplementary to the deficiency of main character as sub character (Dory and Gill). In the previous study, , characterizing of panda 'Poe' is too outstanding and this fact is working as paradoxical limitation. On the other hand, set up of fear and desire of two main characters, Poe and Shifu and dynamics of characteristics are very delicate and effective. On the other hand, in the , in the course of settling down the conflicts between two main characters, father and son, it shows fresh and firm narrative structure with various characters and sub plots. However, though the degree of described fear and desire of main characters are very outstanding, it still reveals it limitation that the course of settlement is somewhat dependent. In conclusion, this study is considered to be another approach to animation characterizing, and also hopefully can be helpful in characterization and setting up relationships in the future.

The Impact of the Internet Channel Introduction Depending on the Ownership of the Internet Channel (도입주체에 따른 인터넷경로의 도입효과)

  • Yoo, Weon-Sang
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.1
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    • pp.37-46
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    • 2009
  • The Census Bureau of the Department of Commerce announced in May 2008 that U.S. retail e-commerce sales for 2006 reached $ 107 billion, up from $ 87 billion in 2005 - an increase of 22 percent. From 2001 to 2006, retail e-sales increased at an average annual growth rate of 25.4 percent. The explosive growth of E-Commerce has caused profound changes in marketing channel relationships and structures in many industries. Despite the great potential implications for both academicians and practitioners, there still exists a great deal of uncertainty about the impact of the Internet channel introduction on distribution channel management. The purpose of this study is to investigate how the ownership of the new Internet channel affects the existing channel members and consumers. To explore the above research questions, this study conducts well-controlled mathematical experiments to isolate the impact of the Internet channel by comparing before and after the Internet channel entry. The model consists of a monopolist manufacturer selling its product through a channel system including one independent physical store before the entry of an Internet store. The addition of the Internet store to this channel system results in a mixed channel comprised of two different types of channels. The new Internet store can be launched by the independent physical store such as Bestbuy. In this case, the physical retailer coordinates the two types of stores to maximize the joint profits from the two stores. The Internet store also can be introduced by an independent Internet retailer such as Amazon. In this case, a retail level competition occurs between the two types of stores. Although the manufacturer sells only one product, consumers view each product-outlet pair as a unique offering. Thus, the introduction of the Internet channel provides two product offerings for consumers. The channel structures analyzed in this study are illustrated in Fig.1. It is assumed that the manufacturer plays as a Stackelberg leader maximizing its own profits with the foresight of the independent retailer's optimal responses as typically assumed in previous analytical channel studies. As a Stackelberg follower, the independent physical retailer or independent Internet retailer maximizes its own profits, conditional on the manufacturer's wholesale price. The price competition between two the independent retailers is assumed to be a Bertrand Nash game. For simplicity, the marginal cost is set at zero, as typically assumed in this type of study. In order to explore the research questions above, this study develops a game theoretic model that possesses the following three key characteristics. First, the model explicitly captures the fact that an Internet channel and a physical store exist in two independent dimensions (one in physical space and the other in cyber space). This enables this model to demonstrate that the effect of adding an Internet store is different from that of adding another physical store. Second, the model reflects the fact that consumers are heterogeneous in their preferences for using a physical store and for using an Internet channel. Third, the model captures the vertical strategic interactions between an upstream manufacturer and a downstream retailer, making it possible to analyze the channel structure issues discussed in this paper. Although numerous previous models capture this vertical dimension of marketing channels, none simultaneously incorporates the three characteristics reflected in this model. The analysis results are summarized in Table 1. When the new Internet channel is introduced by the existing physical retailer and the retailer coordinates both types of stores to maximize the joint profits from the both stores, retail prices increase due to a combination of the coordination of the retail prices and the wider market coverage. The quantity sold does not significantly increase despite the wider market coverage, because the excessively high retail prices alleviate the market coverage effect to a degree. Interestingly, the coordinated total retail profits are lower than the combined retail profits of two competing independent retailers. This implies that when a physical retailer opens an Internet channel, the retailers could be better off managing the two channels separately rather than coordinating them, unless they have the foresight of the manufacturer's pricing behavior. It is also found that the introduction of an Internet channel affects the power balance of the channel. The retail competition is strong when an independent Internet store joins a channel with an independent physical retailer. This implies that each retailer in this structure has weak channel power. Due to intense retail competition, the manufacturer uses its channel power to increase its wholesale price to extract more profits from the total channel profit. However, the retailers cannot increase retail prices accordingly because of the intense retail level competition, leading to lower channel power. In this case, consumer welfare increases due to the wider market coverage and lower retail prices caused by the retail competition. The model employed for this study is not designed to capture all the characteristics of the Internet channel. The theoretical model in this study can also be applied for any stores that are not geographically constrained such as TV home shopping or catalog sales via mail. The reasons the model in this study is names as "Internet" are as follows: first, the most representative example of the stores that are not geographically constrained is the Internet. Second, catalog sales usually determine the target markets using the pre-specified mailing lists. In this aspect, the model used in this study is closer to the Internet than catalog sales. However, it would be a desirable future research direction to mathematically and theoretically distinguish the core differences among the stores that are not geographically constrained. The model is simplified by a set of assumptions to obtain mathematical traceability. First, this study assumes the price is the only strategic tool for competition. In the real world, however, various marketing variables can be used for competition. Therefore, a more realistic model can be designed if a model incorporates other various marketing variables such as service levels or operation costs. Second, this study assumes the market with one monopoly manufacturer. Therefore, the results from this study should be carefully interpreted considering this limitation. Future research could extend this limitation by introducing manufacturer level competition. Finally, some of the results are drawn from the assumption that the monopoly manufacturer is the Stackelberg leader. Although this is a standard assumption among game theoretic studies of this kind, we could gain deeper understanding and generalize our findings beyond this assumption if the model is analyzed by different game rules.

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The Impact of Market Environments on Optimal Channel Strategy Involving an Internet Channel: A Game Theoretic Approach (시장 환경이 인터넷 경로를 포함한 다중 경로 관리에 미치는 영향에 관한 연구: 게임 이론적 접근방법)

  • Yoo, Weon-Sang
    • Journal of Distribution Research
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    • v.16 no.2
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    • pp.119-138
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    • 2011
  • Internet commerce has been growing at a rapid pace for the last decade. Many firms try to reach wider consumer markets by adding the Internet channel to the existing traditional channels. Despite the various benefits of the Internet channel, a significant number of firms failed in managing the new type of channel. Previous studies could not cleary explain these conflicting results associated with the Internet channel. One of the major reasons is most of the previous studies conducted analyses under a specific market condition and claimed that as the impact of Internet channel introduction. Therefore, their results are strongly influenced by the specific market settings. However, firms face various market conditions in the real worlddensity and disutility of using the Internet. The purpose of this study is to investigate the impact of various market environments on a firm's optimal channel strategy by employing a flexible game theory model. We capture various market conditions with consumer density and disutility of using the Internet.

    shows the channel structures analyzed in this study. Before the Internet channel is introduced, a monopoly manufacturer sells its products through an independent physical store. From this structure, the manufacturer could introduce its own Internet channel (MI). The independent physical store could also introduce its own Internet channel and coordinate it with the existing physical store (RI). An independent Internet retailer such as Amazon could enter this market (II). In this case, two types of independent retailers compete with each other. In this model, consumers are uniformly distributed on the two dimensional space. Consumer heterogeneity is captured by a consumer's geographical location (ci) and his disutility of using the Internet channel (${\delta}_{N_i}$).
    shows various market conditions captured by the two consumer heterogeneities.
    (a) illustrates a market with symmetric consumer distributions. The model captures explicitly the asymmetric distributions of consumer disutility in a market as well. In a market like that is represented in
    (c), the average consumer disutility of using an Internet store is relatively smaller than that of using a physical store. For example, this case represents the market in which 1) the product is suitable for Internet transactions (e.g., books) or 2) the level of E-Commerce readiness is high such as in Denmark or Finland. On the other hand, the average consumer disutility when using an Internet store is relatively greater than that of using a physical store in a market like (b). Countries like Ukraine and Bulgaria, or the market for "experience goods" such as shoes, could be examples of this market condition. summarizes the various scenarios of consumer distributions analyzed in this study. The range for disutility of using the Internet (${\delta}_{N_i}$) is held constant, while the range of consumer distribution (${\chi}_i$) varies from -25 to 25, from -50 to 50, from -100 to 100, from -150 to 150, and from -200 to 200.
    summarizes the analysis results. As the average travel cost in a market decreases while the average disutility of Internet use remains the same, average retail price, total quantity sold, physical store profit, monopoly manufacturer profit, and thus, total channel profit increase. On the other hand, the quantity sold through the Internet and the profit of the Internet store decrease with a decreasing average travel cost relative to the average disutility of Internet use. We find that a channel that has an advantage over the other kind of channel serves a larger portion of the market. In a market with a high average travel cost, in which the Internet store has a relative advantage over the physical store, for example, the Internet store becomes a mass-retailer serving a larger portion of the market. This result implies that the Internet becomes a more significant distribution channel in those markets characterized by greater geographical dispersion of buyers, or as consumers become more proficient in Internet usage. The results indicate that the degree of price discrimination also varies depending on the distribution of consumer disutility in a market. The manufacturer in a market in which the average travel cost is higher than the average disutility of using the Internet has a stronger incentive for price discrimination than the manufacturer in a market where the average travel cost is relatively lower. We also find that the manufacturer has a stronger incentive to maintain a high price level when the average travel cost in a market is relatively low. Additionally, the retail competition effect due to Internet channel introduction strengthens as average travel cost in a market decreases. This result indicates that a manufacturer's channel power relative to that of the independent physical retailer becomes stronger with a decreasing average travel cost. This implication is counter-intuitive, because it is widely believed that the negative impact of Internet channel introduction on a competing physical retailer is more significant in a market like Russia, where consumers are more geographically dispersed, than in a market like Hong Kong, that has a condensed geographic distribution of consumers.
    illustrates how this happens. When mangers consider the overall impact of the Internet channel, however, they should consider not only channel power, but also sales volume. When both are considered, the introduction of the Internet channel is revealed as more harmful to a physical retailer in Russia than one in Hong Kong, because the sales volume decrease for a physical store due to Internet channel competition is much greater in Russia than in Hong Kong. The results show that manufacturer is always better off with any type of Internet store introduction. The independent physical store benefits from opening its own Internet store when the average travel cost is higher relative to the disutility of using the Internet. Under an opposite market condition, however, the independent physical retailer could be worse off when it opens its own Internet outlet and coordinates both outlets (RI). This is because the low average travel cost significantly reduces the channel power of the independent physical retailer, further aggravating the already weak channel power caused by myopic inter-channel price coordination. The results implies that channel members and policy makers should explicitly consider the factors determining the relative distributions of both kinds of consumer disutility, when they make a channel decision involving an Internet channel. These factors include the suitability of a product for Internet shopping, the level of E-Commerce readiness of a market, and the degree of geographic dispersion of consumers in a market. Despite the academic contributions and managerial implications, this study is limited in the following ways. First, a series of numerical analyses were conducted to derive equilibrium solutions due to the complex forms of demand functions. In the process, we set up V=100, ${\lambda}$=1, and ${\beta}$=0.01. Future research may change this parameter value set to check the generalizability of this study. Second, the five different scenarios for market conditions were analyzed. Future research could try different sets of parameter ranges. Finally, the model setting allows only one monopoly manufacturer in the market. Accommodating competing multiple manufacturers (brands) would generate more realistic results.

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