• Journal of Electrical Engineering and Technology
• /
• v.5 no.1
• /
• pp.21-27
• /
• 2010

This paper examines the long-run social welfare maximization problems facing public utilities, which includes consideration of the cost of capital or other fixed costs of production, from which it derives optimal investment decisions in a reliability differentiated pricing based market. Reliability differentiated pricing policies lead to straightforward mathematical results on optimal investment decisions in generation and transmission expansion planning. This paper presents the mathematical conditions for optimal investment decisions.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.33 no.3
• /
• pp.77-92
• /
• 2008

Commonality strategy is a popular design practice in designing a product line as it enables the firm cost saving and simplification in design, manufacturing, and distribution processes. However the issue of commonality has been mostly analyzed from a profit maximizing firm's perspective and, to our knowledge, there is no literature that deals with the issue from a different perspective. in this paper, we consider the issue of commonality strategy from a social welfare maximization perspective, and argue that commonality strategy used in designing of public goods can bring certain benefits not just for a firm but also for consumers, i.e., for society as a whole. While we assume certain cost saving in production process due to economies of scale under commonality strategy, we conceptualize two different effects of commonality strategy, utility effect due to cost saving and weighted-averaging effect, and show how these two effects interplay to determine the design of common attribute and desirability of commonality strategy. We also discuss how the implementation of commonality strategy differs under different objectives of a product line designer : social welfare and firm's profit maximization.

• The Transactions of the Korean Institute of Electrical Engineers A
• /
• v.50 no.8
• /
• pp.379-387
• /
• 2001

This paper shows that we can make simple modifications to an existing optimal power flow(OPF) algorithm that minimizes generation costs in order to solve the maximization of social welfare objective of the OPF in a competitive electric power market. We have illustrated the potential for the use of OPF in light of the marked impacts on nodal prices and generation/demand allocation levels among competing suppliers. This paper can provide all market players with the transparent information that ensures sufficient control over producers and consumers in case of economic of secure operation with transmission line outage while maximizing the sum of participants social benefit of participating in the electricity energy market.

• Journal of Electrical Engineering and Technology
• /
• v.6 no.4
• /
• pp.493-504
• /
• 2011

The present paper presents a genetic algorithm (GA) to maximize social welfare and perform congestion management by optimally placing and sizing one Thyristor-Controlled Series Capacitor (TCSC) device in a double-sided auction market. Simulation results, with line flow constraints before and after the compensation, are compared through the Sequential Quadratic Programming SQP method, and are used to analyze the effect of TCSC on the congestion levels of modified IEEE 14-bus and 30-bus test systems. Quadratic, smooth and nonsmooth (with sine components due to valve point loading effect) generator cost curves, and quadratic smooth consumer benefit functions are considered. The main aims of the present study are the inclusion of customer benefit in the social welfare maximization and congestion management objective function, the consideration of nonsmooth generator characteristics, and the optimal locating and sizing of the TCSC using real code-based GA to guarantee fast convergence to the best solution.

• KIEE International Transactions on Power Engineering
• /
• v.5A no.4
• /
• pp.396-402
• /
• 2005

In an electricity market with imperfect competition, participants devise bidding plans and transaction strategies to maximize their own profits. The market price and the quantity are concerned with the operation reserve as well as the bidding system and demand curves in an electricity market. This paper presents a market model combined by an energy market and an operating reserve market. The competition of the generation producers in the combined market is formulated as a gaming of selecting bid parameters such as intersections and slopes in bid functions. The Nash Equilibrium (NE) is analyzed by using bi-level optimization; maximization of Social Welfare (SW) and maximization of the producers' profits.

• The Transactions of the Korean Institute of Electrical Engineers A
• /
• v.52 no.2
• /
• pp.107-113
• /
• 2003

In a deregulated electric power market, a demand function to consider the characteristics of electric power consumers should be required. It is essential that the optimal power flow algorithm with object function of social welfare maximization using the demand function for a competitive electric power market is applied to resolve in a point of economic benefits as well as the security of power systems. Therefore, in this paper, we implement the optimization problem based on linear programming to consider the characteristics of electric power consumers using the demand function and analyze not only the nodal cost for generations and demands but also the variation of demands as a function of the characteristics of electric power consumers through numerical studies.

• Journal of Korea Technology Innovation Society
• /
• v.4 no.3
• /
• pp.355-368
• /
• 2001

The importance of software industry is rapidly increasing with the growth of Internet and the advent of digital economy. The purpose of this study is to research the impact of the copyright protection for securing producers and enhancing of producing on social welfare. The Korean government reformed the copyright law to enhance the copyright protection in 2000 and intensely controlled software piracy in 2001. However, copyright protection has much controversy in aspects of hindering social use of software. This study compared and analyzed the general equilibrium and the copyright protection for social welfare maximization in two cases when network externality exists or not, by assuming the simple demand and supply functions.

• Korea journal of population studies
• /
• v.29 no.1
• /
• pp.241-268
• /
• 2006

This study aim to examine the optimum population in Korea, which has the lowest fertility rate in the world. This study has significance because this rapid decline in the fertility rate is expected to bring the decrease of the population and unbalance in the population composition in Korea. From the social welfare perspective, the optimum population is guided by maximization of the social welfare level per person or the social welfare level in a society. The optimum population can be defined as follows: The proportion of older adults 65 and over is 15-17%, the proportion of work force is 64-69%, the index of aging is 72-104. Within the current population and population composition, the optimum population is estimated as 4.85-4.95 million. These findings imply that we need to remove causes of low fertility rate and prepare for policies encouraging immigration of labor force from foreign countries. In addition, policies and programs where children can be grown up in good environments and women and older adults can participate in labor force should be established.

• Journal of the Korean Regional Science Association
• /
• v.10 no.2
• /
• pp.45-51
• /
• 1994

The purpose of this paper is to present the optimal investment conditions of SOC facilities for maximizing regional social welfare in implementing the urban development project in the theoretical fashion. Particularily, SOC facilities are divided into both supply-side($P_s$) and demand-side SOC ($P_d$) in the paper. General equilibrium analysis from the intra-regional viewpoint by utilizing Pareto's Optimal Conditions and by revising Samuleson's Conditions for public goods($P_s$ and $P_d$) results in the optimum pattern of SOC investment. The following are important implications from the analysis. First, rather than the pursue social equity, SOC investment is to resolve the issue of efficiency to activate the regional economy. Second, the marginal rate of transformation (MRT) between $P_s$ and $P_d$ in the region is to play a significant role in structuring SOC investment plant of local government for social welfare maximization. Third, the optimal SOC investment policy based on this regional economy but also to generate the enhancement of soical amenities of the residents.

• Journal of Electrical Engineering and Technology
• /
• v.7 no.4
• /
• pp.501-512
• /
• 2012

Social welfare maximization in a double-sided auction market is performed by implementing an aggregation-based particle swarm optimization (CAPSO) algorithm for optimal placement and sizing of one Static Synchronous Series Compensator (SSSC) device. Dallied simulation results (without/with line flow constraints and without/with SSSC) are generated to demonstrate the impact of SSSC on the congestion levels of the modified IEEE 14-bus test system. The proposed CAPSO algorithm employs conventional quadratic smooth and augmented quadratic nonsmooth generator cost curves with sine components to improve the accurate of the model by incorporating the valve loading effects. CAPSO also employs quadratic smooth consumer benefit functions. The proposed approach relies on particle swarm optimization to capture the near-optimal GenCos and DisCos, as well as the location and rating of SSSC while the Newton based load flow solution minimizes the mismatch equations. Simulation results of the proposed CAPSO algorithm are compared to solutions obtained by sequential quadratic programming (SQP) and a recently implemented Fuzzy based genetic algorithm (Fuzzy-GA). The main contributions are inclusion of customer benefit in the congestion management objective function, consideration of nonsmooth generator characteristics and the utilization of a coordinated aggregation-based PSO for locating/sizing of SSSC.