• Title/Summary/Keyword: externality

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Pricing Mechanisms for the Internet Resource (인터넷 자원의 효율적 이용을 위한 가격결정 방법)

  • Lee, Yun-Seon;Yun, Min-Yeong
    • The Transactions of the Korea Information Processing Society
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    • v.6 no.11S
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    • pp.3350-3355
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    • 1999
  • Modeling for the Internet resource is important to use of limited resource efficiently. Also, the modeling could guide how we can approach the Internet problems. The many studies of price mechanism to internalize the externality, to decrease the externality from congestion, and to use the Internet resource efficiently, are widely going on. The represent styles for Internet pricing are usage-based pricing(UBP) and flat-rat pricing(FRP) and the FRP could prefers for the beginning stage of Internet introduce. The purpose of this study is to examine the efficiency of Internet pricing mechanism based on flat-rate pricing, both consumer and producer side.

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A Study of Consumer Loyalty on Instant Messaging Services

  • Kim, Sun-Tae;Kim, Jong-Woo
    • Management Science and Financial Engineering
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    • v.16 no.2
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    • pp.67-80
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    • 2010
  • This study is focused on instant messaging service (IMS) providers' efforts to maintain a steadfast group of consumers who are willing to continuously use one service without switching to another. Various factors, carefully selected to reflect the unique features of instant messaging, were tested to verify their relationship with consumer loyalty. The results suggest that consumer loyalty of IMS users is most significantly affected by trust and perceived reputation a consumer has on the provider of IMS. Network externality, or the size and proximity of relationships formed through an IMS, also proves to have effect on consumer loyalty. Consumer loyalty in IMS users of different age or different internet usage is affected differently by each factor.

The Efficiency of Networks and Competitive Strategies (네트워크의 효율성과 경쟁 전략에 관한 연구)

  • 김우봉
    • Journal of Information Technology Applications and Management
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    • v.9 no.3
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    • pp.97-111
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    • 2002
  • This paper attempts to provide an overview of relationship between the characteristics of the network and competitive strategies. We review the theoretical background of the efficiency of network, which Is very important for the network-based industries. Network externality, positive feedback effects, bandwagon effects, economies of scale, economies of scope in network-base businesses are reviewed. Various network situations, including interconnection, and strategies are also discussed. In this purpose, simple but meaningful examples and cases are used to show the economic goals and means of network competition strategies. We try to link network strategies to the generic strategies and coopetition suggested by Porter and by Brandenburger and Nalebuff respectively. Since this study is an exploratory research, further studies on more complex network situation in the real work can be executed with taking advantage of this effort.

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A Study on Antecedents of Customer Switching Behavior in Mobile Services (이동통신 서비스 전환행동에 영향을 미치는 요인에 관한 연구)

  • Yoon, Jung-In;Sung, Su-Jung;Lee, Jung-Woo
    • Korean Management Science Review
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    • v.26 no.3
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    • pp.169-184
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    • 2009
  • Recently, mobile telecommunication businesses contend with each other to expand their customer base by using aggressive marketing strategies. In order to determine if there strategies are effective, customer's switching behavior needs to be studied. This study identifies and analyzes direct, indirect factors that may customer switching behavior : attractiveness of alternatives, network externality, and switching cost. Results reveals that attractiveness of alternatives, network externalities have a direct impact on customer switching behavior. These two factors also have moderating effects on customer switching behavior but the switching cost does not In short, network externalities and alternatives strategically determine the success of 3.5G service. In this regard, mobile business should improve their own attractiveness of alternatives by developing specialized service in 3.5G service.

Smart Grid and Its Implications for Electricity Market Design

  • Kim, Seon-Gu;Hur, Seong-Il;Chae, Yeoung-Jin
    • Journal of Electrical Engineering and Technology
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    • v.5 no.1
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    • pp.1-7
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    • 2010
  • Recently, smart grid has been considered a very important new energy delivery technology, and one that can help ensure a cleaner environment by making use of information and communication technology (ICT) in countries around the world. The many technological benefits smart grid offers is expected to bring about a huge change in the electric energy supply chain. In particular, smart grid with advanced ICT is likely to allow market agents to participate in the decision-making process in the restructured electricity industry, easily facilitating Homeostatic Utility Control. In this paper, we examine smart grid as a market externality, and then illustrate issues from the commercial market perspective as it relates to electricity market design. Finally, our paper identifies some of the impacts of smart grid on electricity market design, which may possibly be incorporated into the evolution of the electricity market, thus ensuring market efficiency.

An Application of Evolutionary Game Theory to Platform Competition in Two Sided Market (양면시장형 컨버전스 산업생태계에서 플랫폼 경쟁에 관한 진화게임 모형)

  • Kim, Do-Hoon
    • Journal of the Korean Operations Research and Management Science Society
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    • v.35 no.4
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    • pp.55-79
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    • 2010
  • This study deals with a model for platform competition in a two-sided market. We suppose there are both direct and indirect network externalities between suppliers and users of each platform. Moreover, we suppose that both users and suppliers are distributed in their relative affinity for each platform type. That is, each user [supplier] has his/her own preferential position toward each platform, and users [suppliers] are horizontally differentiated over [0, 1]. And for analytical tractability, some parameters like direct and indirect network externalities are the same across the markets. Given the parameters and the pricing profile, users and suppliers conduct subscription game, where participants select the platform that gives them the highest payoffs. This game proceeds according to a replicator dynamics of the evolutionary game, which is simplified by properly defining gains from participant's strategy in the subscription game. We find that depending on the strength of these network effects, there might either be multiple stable equilibria, at which users and suppliers distribute across both platforms, or one unstable interior equilibrium corresponding to the market tipping in favor of either platform. In both cases, we also consider the pricing power of competing platform providers under the framework of the Stackelberg game. In particular, our study examines the possible effects of the type of competition between platform providers, which may constrain the equilibrium selection in the subscription game.

Network Neutrality in the Digital Convergence Era : a System Dynamics Model with Two-Sided Market Framework (디지털 컨버전스 환경에서 양면시장 플랫폼으로서의 인터넷망 중립성에 관한 동태적 분석)

  • Kim, Do-Hoon
    • Journal of Information Technology Services
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    • v.10 no.2
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    • pp.75-94
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    • 2011
  • The industrial ecosystem around the Internet services has been evolving since the Internet was first introduced. The Net Neutrality issue best represents the process of the evolution and presents an inevitable challenge that the industry should overcome. This paper deals with this structural change with the Two-Sided Market framework and provides a System Dynamics(SD) model to evaluate the economic implications of the net neutrality policy. In particular, our approach analyzes the policy impacts when two competing platforms (network providers) play a role of the platform in a typical two-sided market, which connects Content Providers(CPs) with users. Previous studies show that the indirect network externality between these two markets makes the entire system tip to one platform. When the multi-homing in the CP market is allowed as in our model, however, their argument may lose its validity. To examine the system behavior, conducted here is SD simulations of our model. The simulation results show that co-existence of the competing platforms persists with the network effects over a certain threshold. The net neutrality policy seems to lower the threshold based on our experimental outcomes.

The Study on the Stress Coping Method of the Dept. Dental Hygiene by the Personality Type (치위생과 학생들의 성격유형과 스트레스 대처방식에 관한 연구)

  • Kim, Kyung-Mi;Kang, Jae-Kyoung
    • Journal of Korean society of Dental Hygiene
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    • v.3 no.2
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    • pp.101-116
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    • 2003
  • The purpose of this study was to identify the personality type and stress coping method of students of Dept. dental hygiene students and relationship between them. Second purpose of this study was to suggest the good and useful method of stress coping. Data was drawn from a convenient sample of 350 and 3rd year students of the department of dental hygiene, some college located in Kyung-Ki Province. The results were analyzed with SPSS 10.0 and the conclusion is as follow: 1. The average of Machiavellism type is 3.30, which indicates that most of the students has a middle type(80%). In the A/B type, most of the students has B type(46.7%). In the score of externality and internality, externality(62.6%) is higher than internality(20.3%) 2. As a result of investigating how they coped with stress, the direct coping was utilized most and the physical was utilized least. 3. In the relation between the personality type and stress coping method, non-Machiavellism type has a statistically significant difference, in the direct coping and destructive coping.

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The Effects of the Relational Exchange with eMarketplace on the Purchasing Performance (e마켓플레이스에서 관계교환수준이 구매업무성과에 미치는 영향)

  • Kwon, Sun-Dong;Ahn, Joong-Ho;Yang, Hee-Dong
    • Asia pacific journal of information systems
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    • v.13 no.3
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    • pp.173-193
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    • 2003
  • As the interest in the business-to-business(B2B) electronic commerce is increasing, some companies are participating in the B2B eMarketplaces(electronic marketplaces). The eMarketplace has an effect on the method of B2B transactions or the purchasing performance. The academy and the industry are focused on the cause and the result of this effect. The purpose of this research is to analyze the effects of the relational exchange with eMarketplace on the purchasing performance, considering the supply externality and system integration as intervening variables. This study investigates the second-order effect of eMarketplace in which the degree of improvements in two aspects of purchasing activity(price reduction, purchasing efficiency) depends on the degree of the relational exchange with eMarketplace, namely, the governance of eMarketplace. Our hypotheses on this second order effect were supported. We found that the higher the relational governance, the lower in price reduction, and the better in purchasing efficiency. In more details, the high relational governance lowers the supply externality, and in turn deteriorates the improvement in price reduction. Meanwhile, the high relational governance accelerates the information system integration, and brings the better purchasing efficiency. Our findings suggest that organizations can improve their purchasing activities better if they choose the appropriate eMarketplace governance.