• Asia pacific journal of information systems
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• v.28 no.1
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• pp.19-35
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• 2018

This study uses the concepts of mental accounting and coupling in consumption to demonstrate a systematic relationship between behavioral costs, sunk costs, coupling, and user intention to discontinue social network services (SNS) use. An analysis of 213 SNS users found that coupling and sunk costs are two major factors that influence an individual's intention to discontinue SNS use. An interesting finding of this study is that the perception of coupling is created by behavioral costs in the context of an SNS. This finding implies that the source of cost perception when perceiving coupling may differ depending on whether the product or service is traditional or web-based. These results contribute to an expansion of the theoretical discussion of individual-level discontinuance intention after adopting SNS by conceptualizing the perception of coupling.

• 한국경영정보학회:학술대회논문집
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• 2007.06a
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• pp.539-544
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• 2007

People tend to resist changing their software even alternatives are better then the current one. This study examines the resistance to change in the use of software from the switching costs perspective based on status quo bias theory. For this study, we select Web Browsers as software. Based on the classification of switching costs into three groups (psychological, procedural, and loss), this study identifies six types of switching costs (uncertainty, commitment, learning, setup, lost performance, and sunk costs). This study tests the effects of six switching costs on user resistance to change based on the survey of 204 web browser users. The results indicate that lost performance costs and emotional costs have significant effects on user resistance to change. This research contributes towards understanding of switching costs and the effects on user resistance to change. This study also offers suggestions to software vendors for retaining their users and to organizations for managing user resistance in switching and adopting software.

• 한국경영정보학회:학술대회논문집
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• 2007.06a
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• pp.126-131
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• 2007

Most Internet auction studies have focused on examining the determinants of auction success or closing price. However, there has been little previous research which investigates dark-side factors such as overbidding behavior in the Internet C2C transactions. For this reason, this study attempts to find situations with the escalation of commitment to bids using Internet auction systems and also examines whether the bidder's bidding is irrational. Therefore, this study applies escalation of commitment to explain the auction process such as the "going, going, gone period" with competition in Internet C2C auctions. In order to describe the auction process in terms of escalation of commitment, this study proposes psychological sunk costs, completion effect, and self-justification as the key factors of escalation of commitment and also willingness to continue bidding reflecting the decision maker's escalation behavior in terms of persistence perspective as final dependent variable. The results of PLS analysis indicate that a bidder's overbidding behavior is explained by the escalation of commitment.

• Environmental and Resource Economics Review
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• v.11 no.4
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• pp.633-657
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• 2002

This study presents a demand modelling for landfill gas, which is used as alternative energy source for district cooling business. By analyzing the cost minimizing behavior of producer facing with three alternative energy sources such as electricity, cooling heat water, and gas, a demand function for landfill gas is derived from the optimal operating time of gas fired production facility, and estimated using unpublished data, which are associated with Seoul city's development plan for Sang-am area. The estimation results repeals that Seoul City could supply the land-fill gas of 13.76 million cubic meters each year at the price of about 16 won per cubic meters. However, if the investment costs associated with installation of gas collecting facilities are treated as sunk costs, annual amount of gas supplied is expected to increase to 14.22 million cubic meters at a lower unit price of 14.76 won.

• KIEAE Journal
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• v.17 no.2
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• pp.35-43
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• 2017

Purpose: The purpose of this study is to find out the characteristics of service (landfill) costs (hereinafter, the "landfill costs") applied to the dissolution promotion committee and analyze the characteristics of landfill costs at the time where the dissolution of promotion body is increasing with the authority of the head of local government regarding the territory difficult with the continuous promotion by delaying or suspending the project for a prolonged period or suspending the project through the dissolution of the project body by the promotion committee and cooperative union since the flawless promotion of the maintenance project. Method: After revising the law in February 2012, the survey and analysis is made for the status of applying landfill costs and maintenance project scale of the dissolution promotion committee not confirmed in details around a total of 20 regions, including, 9 regions of redevelopment projects completed with the advance review, 7 regions of re-construction projects and 4 regions of urban environment maintenance projects from the total of 59 regions, Result: The influence on the landfill costs is shown to be greatest in the service expenses and management and supervision on this field has significance for the maintenance project perceived as private project, rather than public project, that the public management is neglected with insufficient presentation of operation criteria and so forth that it displays the tendency to lead to the discrete operation of the project body. In order to enhance the transparency of operating costs for the projects that are led by private capital, it is required to strengthen the role of public sector through enthusiastic intervention by the public sector in standardization of operation criteria, presentation of guideline and so forth.

• Journal of the Korean Institute of Navigation
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• v.25 no.4
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• pp.417-422
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• 2001

Every ship might be exposed to collision, grounding and/or various accidents. They may make some underwater holes on the hull. An underwater damage would cause her loss of buoyancy, trim, and inclination. Although a ship has some provisions against these accidents, if the circumstance is serious, she would be sunk or upsetted. Because of varieties of type of accidents, one could not prepare all of them. Many subdivision could prevent them, but it is difficult to realize it due to rising costs. This paper deals with physical phenomena of sinkage and an application on box type ship, and some results are earned as follows； 1. sinkage speed up to the level of the damage hole is increased proportionally, and is decreased proportionally after filling the level. 2. the curve of draft shows cup type of second order polynomial up to the damage hole level, and shows cap type of second order polynomial after filling the level. 3. if damage occurs beneath half of the draft, changes of head and displacement, and sinking speed follow almost straight lines. 4. by careful observation, sinkage speed could be predicted.

• The Journal of Fisheries Business Administration
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• v.44 no.1
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• pp.25-37
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• 2013

The permit system is the most typical regulation system in Korean fishery. Even now, it has caused resource management failure, it has also invited economic inefficiency and inequity. Accordingly, the Korean government has recently introduced the fishing boats market, it would be improve entry barrier for new capital and labor in fishing industry. This study aims to survey and to analyze the status of coastal fishing boat market using the executive documents on permit system in Gyongnam province. And also, this study put focus on improve fishing permit trade take advantage of the fishing boat trading. The survey results indicated that the number of fishing boats trading is estimated about 5,000 per year, however, fishing boat market is very narrow. An analysis on fishing permit trading showed that policy support is essential to reduce transaction cost. Therefore, it is necessary to explore corresponding policy tasks, this will be reduce transaction costs and sunk cost.

• Journal of the Korean Geographical Society
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• v.29 no.2
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• pp.117-136
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• 1994

Contemporary global space economy is so dynamic that any one specific structural force can not explain the whole dynamic processes or trajectories of spatial industrial development. The major purpose of this paper is extending the traditional notion of industrial districts to functioning and development of new industrial districts with relation to the development of high technology industries. Several dynamic forces, which are dominated in new industrial districts in the modern space economy, are incorporated in the formation and dynamic aspects of new industrial districts. Even though key forces governing Marshallian industrial district are localization of small firms, division of labor between firms, constructive cooperation, and industrial atmosphere, Marshall points out a possibility of growing importance of large firms and non-local networks in the districts with changes of external environments. Some of Italian industrial districts can be regarded as Marshallian industrial districts in broader context, but the role of local authorities or institutions and local embeddedness seem to be more important in the Italian industrial districts. More critical implication form the review of Marshallian industrial districts and Italian industrial districts is that the industrial districts are not a static concept but a dynamic one: small firm based industrial districts can be regarded as only a specific feature evolved over time. Dynamic aspects of new industrial districts are resulting from coexistence of contrasting forces governing the functioning and formation of the districts in contemporary global space economy. The contrasting forces governing new industrial districts are coexistence of flexible and mass production systems, local and global networks, local and non-local embeddedness, and small and large firms. Because of these coexistence of contrasting forces, there are various types of new industrial districts. Nine types of industrial districts are identified based on local/non-local networks and intensity of networks in both suppliers and customers linkages. The different types of new industrial districts are described by differences in production systems, embeddedness, governance, cooperation and competition, and institutional factors. Out of nine types of industrial districts, four types - Marshallian; suppliers hub and spoke; customers hub and spoke; and satellite - are regarded as distinctive new industrial districts and four additional types - advanced hub and spoke types (suppliers and customers) and mature satellites (suppliers and customers) - can be evolved from the distinctive types and may be regarded as hybrid types. The last one - pioneering high technology industrial district - can be developed from the advanced hub and spoke types and this type is a most advanced modern industrial district in the era of globalization and high technology. The dynamic aspects of the districts are related with the coexistence of the contrasting forces in the contemporary global space economy. However, the development trajectory is not a natural one and not all the industrial districts can develop to the other hybrid types. Traditionally, localization of industries was developed by historical chances. In the process of high technology industrial development in contemporary global space economy, however, policy and strategies are critical for the formation and evolution of new industrial districts. It needs formation of supportive tissues of institutions for evolution of dyamic pattern of high technology related new industrial districts. Some of the original distinctive types of new industrial districts can not follow the path or trajectory suggested in this paper and may be declined without advancing, if there is no formation of supportive social structure or policy. Provision of information infrastructure and diffusion of an entrepreneurship through the positive supports of local government, public institutions, universities, trade associations and industry associations are important for the evolution of the dynamic new industrial districts. Reduction of sunk costs through the supports for training and retraining of skilled labor, the formation of flexible labor markets, and the establishment of cheap and available telecommunication networks is also regarded as a significant strategies for dynamic progress of new industrial districts in the era of high technology industrial development. In addition, development of intensive international networks in production, technology and information is important policy issue for formation and evolution of the new industrial districts which are related with high technology industrial development.

• Information Systems Review
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• v.11 no.3
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• pp.125-146
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• 2009

The emergence of open source software(OSS) with its most prominent advantages creates a vast interest among practitioners. A study on Linux, the most well-known OSS, estimated that it would cost as 5.4 billion Euros taking over 73,000 person-years if it had been developed by conventional means. However, Linux has achieved only 0.65 percent of the operating system market for individual users while Microsoft windows family counts for nearly 90 percent of the market. Much of the effort being spent in the development of OSS is going to waste and potential value that OSS can bring to users is not being realized. Adoption of OSS is often accompanied by the discontinuance of existing software that is already in place. If users resist changing, they may not adopt OSS. Using the case of Linux, this study examines user resistance to change from the commercial operating software to the free operating system. This study identifies six sub-types of switching costs (uncertainty, emotional, setup, learning, lost benefit, and sunk costs) and tests their effects on user resistance to change based on a survey of 201 users. The results show that user resistance to change has a negative impact on the adoption of OSS. Further, this study shows that uncertainty and emotional costs have significant effects on user resistance to change. Beyond previous research on technology adoption, this research contributes towards an understanding of the switching costs leading to user resistance to change and offers suggestions to OSS practitioners for developing strategies to improve the adoption of OSS.

• New & Renewable Energy
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• v.7 no.2
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• pp.18-27
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• 2011

Management flexibility to adapt its future actions in response to altered future market conditions can expand the value of an investment opportunity by improving its upside potential without the change in the downside losses. Module manufacturers in solar industry continuously have to decide how much and when its production capacity should be expanded with regards to the demand in the global markets. Either over- or under-investment can cause sunk and/or opportunity costs to the module manufacturers. Option of exercising the additional investments only on favorable opportunities can increase total value of the investment. This paper analyzes the case which shows that the expansion of production capacity with more expandibility can have more value than the rigid plan of capacity expansion. The expansion option value is equivalent to KRW 38.286 billion, thus switching the negative NPV of the initial investment opportunity into the positive value. High volatility and the high growth in the cashflows as the major business features of the renewable energy provide condition where real options can play the crucial role in increasing the investment value as well as in determining the size and timing of capacity expansion in the course of capital budgeting process.