• Journal of Communications and Networks
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• v.18 no.6
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• pp.962-974
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• 2016

We are concerned with whether a vertically integrated broadband and content provider can unreasonably advantage itself over competing content providers, either by selling quality-of-service (QoS) to content providers at unreasonably high prices, or by refusing to provide access to QoS to competing content. We address this question by modeling the competition between one such vertically integrated provider and one over-the-top (OTT) content provider. The broadband provider decides whether to deploy QoS, and if so it also determines the QoS price if sold to either the OTT content provider or directly to users. We analytically determine when the broadband provider will sell QoS and when the OTT content provider or users will purchase QoS. We characterize the optimal QoS and video service prices. The Internet service provider (ISP)'s market share increases with the difference in the value of the two video services and decreases with the difference in the corresponding costs. Numerical results illustrate the effect of QoS price on content price, the variation of prices and profit with QoS price, and the variation of prices and market shares with the benefit of QoS. The ISP may sell QoS to users at a lower price than when QoS is sold to the OTT provider.

• The Journal of the Korea Contents Association
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• v.18 no.10
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• pp.267-278
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• 2018

The purpose of this study is to analyze how the vertical integration, which is the main characteristic of the domestic digital music market, appears in each period and how these phenomena affect the digital music market. As a result, we could find out that the domestic digital music market is a vertically integrated market centered on ISPs. There were a variety of subjects that led the digital music market from the early digital music in 2000s to the latest streaming market. However, ISP was the only subject that vertically integrated all aspects of content, distribution, and consumption through its subsidiaries and affiliated companies. A variety of combined services, supplementary services, and fare plans provided by using its platform and network have become mainstream services in the domestic digital market and have fixed the current transaction type in domestic market.

• Review of Culture and Economy
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• v.20 no.1
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• pp.105-128
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• 2017

The purpose of this paper is to analyze the impact of distributors on the movie exhibition by distributor types. For the analysis, the concept 'screen elasticity of box office' is adopted. Using the weekly screening data of 94 hit movies released in Korea in 2014 and 2015, the panel analysis estimates the 'screen elasticity of box office' with the Hausman-Taylor estimator. The results show that the screen elasticity of box office is smaller for vertically integrated distributors(CJ E&M and Lotte Entertainment) and Hollywood distributors than the local distributors(Showbox and NEW) that do not own integrated cinemas. This means that exhibitors allocate a larger number of screens to vertically integrated distributors and Hollywood distributors. As the two distributor groups had higher market share during the period, the results imply that the screen elasticity is related to the market performance of distributors. Smaller screen elasticity of the vertically integrated distributors might be related not to the ownership to theaters but to higher market share of the distributors.

• Proceedings of the KIEE Conference
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• 2007.11b
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• pp.258-260
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• 2007

MAS based market simulator has attracted the attentions of people who are interested in using or developing electricity market simulator. MAS based approach makes it possible to model each market participant's strategic behaviors. Traditional market simulators have used optimization formulation to model market operation, which has been used since vertically integrated system. Optimization mainly uses cost minimization or welfare maximization of entire system. Therefore it is somehow difficult to model the independently strategic behaviors of market participants. MAS is one of AI technology based on distributed intelligence which makes it possible to model independently acting entities in competitive market. This paper proposes the method to model strategic participants in electricity market based on MAS.

• Review of Culture and Economy
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• v.21 no.1
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• pp.3-20
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• 2018

This study investigates a comprehensive context between the vertical integration and concentration of Korean film market. The concentration of distribution and screening markets are result of industrial strategy to defend demand uncertainty and to pursue economies of scale. Major distributors are increasingly inclined to defend industrial risk by concentrating resources on blockbusters and bargaining power of the multiplex is getting strengthened by distribution competition to secure as many screens as possible. Vertically integrated multiplexes operate discriminatory preferential treatment to their affiliates, however, there is a difference in degree of discrimination between vertically integrated groups. Furthermore, it is difficult to exclude each other from the distribution competition in which the largest screen number has to be secured. It is difficult for multiplex only to pursue the interests of affiliates and make negative choices in screening performance. As the number of screening screens increases, the seat occupancy also increases. As a result, the polarization of the distribution and screening markets, including the screen monopoly, is a phenomenon that occurs commercial films centered markets and the unfair behavior of the vertically affiliated multiplex has a limited effect on the movie market.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.553-581
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• 2014

This paper analyzes competition among service stations in the Korean gasoline market. We consider spatial differentiation as a source of product differentiation as well as the characteristics of the stations and vertical contracts between refiners and retailers as factors causing changes in equilibrium prices in the Korean gasoline retail market. The effect of the government's price disclosure policy on the retail market competition is also analyzed. Moran's I test indicates that the prices of neighboring gas stations are spatially correlated in the market. It is also found that gasoline prices for vertically integrated stations are much lower than those for independent stations. In addition, unbranded stations charge lower prices than branded stations but also induce branded stations to price more competitively. Meanwhile, the government's price disclosure policy did intensify price competition in the retail gasoline market. It is inferred that the price disclosure policy contributed to retailers gaining more bargain power in price negotiation with refiners, causing an eventual increase in retail prices.

• Proceedings of the KIEE Conference
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• 2001.05a
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• pp.108-111
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• 2001

The electric power industries in Korea are launched into deregulation by introducing the CBP(Cost Based Pool), where generation sector of KEPCO was divided into six generation companies and the other sectors of KEPCO remains vertically integrated system. In deregulated market, participants are concerned with maximization of their profit rather than minimization of system-wide costs. Consequently, there are difficulties in applying the cost minimization for the scheduling of generation resources to CBP, because of the operation of pumped-storage hydroplants. This paper presents an operation method of pumped storage hydroplants which is helpful for the economic operation of power system considering the market in the CBP.

• The International Journal of Costume Culture
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• v.7 no.1
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• pp.48-57
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• 2004

The purpose of this study is to investigate how three factors--designer's capability, product market strategy, and product organization--supposed to determine the design process are related to each other. These factors influence Korean knitwear companies' market performances. For this purpose, we did not only library research on relevant theories such as the transaction cost economics but also empirical research largely based on a questionnaire. The respondents of the questionnaire were 59 designers, merchandisers(MDs), and top managers of knitwear companies located in Seoul. We analyzed the collected questionnaire data by using such statistical tools as χ²-test, t-test, and one-way ANOVA. Findings of this study were as follows. While there was a significant relation between organization form and designer's capability, no significant difference in designer's capability was found between trust enhanced network and unenhanced network. No significant relation was found between organization form and product market strategy, in discordance with Carney's arguments. Also, it appeared that there was no significant relationship between knitwear companies' product market strategies and their designers' capabilities.

• Journal of the Korean Society of Clothing and Textiles
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• v.30 no.11 s.158
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• pp.1495-1506
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• 2006

The purposes of this study are to investigate the formation and the change of apparel retail structure historically with the viewpoint that the retail structure is affected by the process of economic development. This study was done by literature research method and the result of this study is the following. The tailor and seamstress shops, the first clothing shops in Korea, were replaced by ready-made shops, because mass production system which had developed with the industrialization of Korea increased the advantage of economy of scale compared to handicrafts individual one. After that, the production system of apparel industry had been efficient continuously, while retail system had not. The retailing of famous brand apparel conducted by exclusive franchise store caused supplier oriented markets where the opinion and the desire of consumers were not reflected. While the retailing of the unknown brand apparel handled by small retail stores were inefficient. As the apparel industry matured in 1990s, various types of new stores appeared such as specialty stores, discount stores, TV home shopping, internet shopping, outlet malls, and big fashion stores in Dongdeamoon. These new stores have features of seeking profits in mass merchandising. As these large retail stores grow, the apparel retail structure of Korea is changing from a fragmented market to a vertically integrated one. This change is shown by the decrease of stores per inhabitants. With the change of environment, the apparel retail system which has lagged behind comparatively is expected to develop into more efficient system based on the large capital investment which raise the advantage of economy of scale.

• KIEE International Transactions on Power Engineering
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• v.3A no.1
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• pp.42-46
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• 2003

The economic operation of a utility in a deregulated environment brings about optimization problems different from those in vertically integrated one［1］. While each utility operates its own generation capacity to maximize profit, the market operator (or system operator) manages and allocates all the system resources and facilities to achieve the maximum social welfare. This paper presents a sequential application of non-cooperative and cooperative game theories in analyzing the entire power transaction process.