• Title/Summary/Keyword: facilities-based competition

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Market Efficiency Analysis between Facility-Based and Service-Based Competition

  • Seo, Il-Won;Lee, Duk-Hee;Kim, Byung-Woon
    • ETRI Journal
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    • v.30 no.4
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    • pp.587-596
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    • 2008
  • Facility-based competition (FBC) in the telecommunications market is considered to have lower static efficiency in the short term and higher dynamic efficiency in the long term. Under service-based competition (SBC), the entrant can reduce its setup costs by leasing network facilities from the incumbent, which makes the entrant viable, pushes the market price down and promotes static efficiency. This paper attempts to measure static efficiency by comparing the profits of the incumbent and entrant in terms of consumer surplus and social welfare under each competition type by extending the Stackelberg model. The results, assuming a linear demand function and variation in regulatory level, show that FBC results in higher social welfare than SBC on the whole. However, SBC accompanied by strong regulation is also shown to have the potential to be superior over FBC. It is also revealed that FBC exhibits a higher producer surplus (particularly, the incumbent's producer surplus) and is, therefore, more desirable in terms of dynamic efficiency. When the entrant's cost is high in FBC, social welfare is shown to be lowered, implying that cost competitiveness is a necessary condition for social welfare.

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Refusal to Dealing of Essential Facilities under Fair Trade Act -Focused on Adoption of Broadcasting Contents- (공정거래법상 필수설비의 거래거절 -방송 콘텐츠의 적용을 중심으로-)

  • Kim, Hee-Kyung;Cha, Young-Ran
    • The Journal of the Korea Contents Association
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    • v.11 no.10
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    • pp.115-127
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    • 2011
  • As broadcasting contents are recognized as a key competition means, there are issues raised such as improvement of terrestrial retransmission system, introduction of PAR in broadcasting market and so forth. Especially, in pay broadcasting market, strategic partership between SP and PP leads to contents exclusivity for competitors, which causes to hinder normal competition and limit viewers' right of access. Consequently, not only is it claimed that essential facilities doctrine should be adopted in broadcasting market, but also clause of content equal access in IP TV law and adoption of prohibited acts regulation can be viewed in the same context. However, adoption of essential facilities doctrine in broadcasting market is likely to be counterproductive because of the differences of philosophies, economies and legal systems on which general facilities and contents are based. Therefore, it is time for a essential facilities concept, a fundamental concept of a refusal to dealing of essential facilities, and basic works to review specific cases and precedents implemented in competition laws market This study aims to review and propose beforehand if adoption of essential facilities doctrine is appropriate for broadcasting contents.

A Study on the 「UR Housing Stock Renewal Design Competition」 for Hanahata No. 27 Housing by the UR Renaissance Agency in Japan (「UR단지재생 디자인콤페」에 나타난 하나하타단지(花畑団地) 27호동의 기존스톡 활용수법 연구)

  • Yoo, Soon-Seon
    • Journal of the Korean housing association
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    • v.24 no.6
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    • pp.1-8
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    • 2013
  • The purpose of this study is to perform an analysis on the design methods of the "UR Housing Stock Renewal Design Competition" for Hanahata No.27 Housing by the UR Renaissance Agency in Japan. The analysis is done by looking at the aspects of lifestyle, demographics, environment, and community changes. The results are as follows: 1) Since demographic changes are caused by low fertility, aging populations need the support of locally-based social welfare facilities of which the architectural aspect can be examined. 2) Changes in lifestyle, such as diversity of family composition, flexibility of work, and improvement of leisurely activities require residents to have public spaces and facilities 3) Since environmental changes caused by deteriorated housing need the conversion of awareness about housing estates as a social asset. 4) To revitalize the community, houses, public facilities, and communal outdoor spaces must be connected. The results of this study are expected to serve as clues to the future direction of sustainable conversion in Korea.

A Study on the Concept of the Public Library in the Architectural Competition and their Application in Design Process - Focused on the Chungcheongnam-do Provincial Library - (공공도서관 설계경기에 나타난 계획방향에 대한 건축설계 연구 - 충청남도 도립도서관 설계경기 계획안을 중심으로 -)

  • Park, Yeol;Kim, Seung-Je
    • Journal of the Korean Institute of Educational Facilities
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    • v.21 no.6
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    • pp.13-24
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    • 2014
  • The purpose of this study is to understand the required concept in the architectural competition for public library and its application in design process. The research is based on the 27 design guideline of architectural competition for public library from 2009 to 2013 and, as a case study, the project for the Chungcheongnam-do Provincial Library, the prize winner in 2014. Three required concepts; symbolism, function, and sustainability, are categorized through the analysis on the design guideline of 27 competitions and are identified. Symbolism is expressed by landmark forms based on the local characteristics. The function of public library means to provide services to everyone, regardless of age, race, gender, religion etc., as a local community. Sustainability is related to passive architecture for the maintenance and management of buildings. These three concepts for public library applied on the design process of Chungcheongnam-do Provincial Library and design elements in each process are categorized in three concepts. The results shows not only how closely the locality and a user are related, but also the changes in the appearance of a public library as time passed.

Determination of the Optimal Access Charge for the Mobile Virtual Network Operator System

  • Kim, Byung-Woon;Park, Sung-Uk
    • ETRI Journal
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    • v.26 no.6
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    • pp.665-668
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    • 2004
  • The introduction of a mobile virtual network operator (MVNO) system is expected to increase consumer benefits, boost competition in the mobile market, utilize idle bandwidth, and expedite mobile-fixed line convergence and growth in the mobile Internet market. This research endeavors to study the optimal access charge for an MVNO system, which is expected to be introduced to the Korean mobile communications market. We found that the optimal access charge is higher in the interdependent model than in the independent model if demand for mobile phone service is based on a substitution relationship. We also found that the optimal access charge is higher than the marginal cost.

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Competition Policy and Open Access to Essential Facilities in Natural Gas Market (천연가스시장 경쟁도입과 필수설비 공유의 효과 분석)

  • Heo, Eun Jeong;Cho, Myeonghwan
    • Environmental and Resource Economics Review
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    • v.29 no.1
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    • pp.47-89
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    • 2020
  • We introduce a simple theoretical model to analyze the welfare impact of a competition policy in the natural gas market in South Korea. An incumbent monopolistic firm currently owns essential facilities, but the competition policy mandates that the firm provide open access to any entrant firm, charging an access fee. When no regulation is imposed on the fee pricing, this policy increases social welfare as well as the profit of the incumbent firm. When the pricing is regulated, however, social welfare depends on whether there is information asymmetry between the government and the firm regarding the operating cost of the facilities. If the government has complete information, social welfare can be maximized by choosing the optimal prices. Otherwise, the government has to set the prices based on the information that the firm delivers. We formulate a Bayesian game to analyze this case and identify a set of perfect Bayesian equilibria to compare social welfare.

A Study on the Web-based Overall Information Management System Developement of the Overhead Distribution Facilities Using SIAS (SIAS를 이용한 웹 기반 가동배전설비 종합 정보관리 시스템 개발에 관한 연구)

  • Lee, Dong-Yeop;Kim, Dong-Sik
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.58 no.5
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    • pp.898-904
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    • 2009
  • The objective of the present study lies in constructing web-based GIS system providing broad range of information applicable for power/telecommunications distribution facilities through cable. Nowadays, Korea is renowned forits faste sttele communications network across the nation enjoyable for being a test-runbed by worldwide contents providers. It is not too much to say that the trend is caused by the fact that Korea utilizes the cobweb-like power transmission cables applicable for the nationwide telecommunications networking. In particular, the trend has been all the more encouraged by the governmental drive to expedite the telecommunication network by way of the established power transmission facilities deemed as publicutility. Nevertheless, few can deny that the overexcessive competition among telecommunication service providers increasingly gives rise to unauthorized, arbitrary facilitation of distribution devices, which becomes much burden in operating the normal power/telecommunications distribution facilities by a power-generating company. In this regard, the study, to cope with such problems, attempts to develop a web GIS-based information management system compatible with NDIS(New Distribution Information System), a distribution facility management system now under operation by KEPCO, making advantage of GE Energy's SIAS(Smallworld Internet Application) technology. The model provided by this study is expected to get closer into effective operation of distribution facilities along with better sharing of information among conventional telecommunications operators, while getting rid of infringed facilitation cases

Analysis of Revenue-Sharing Contracts for Service Facilities

  • Yeh, Ruey Huei;Lin, Yi-Fang
    • Industrial Engineering and Management Systems
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    • v.8 no.4
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    • pp.221-227
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    • 2009
  • There are customer services jointly provided by two facilities so that each customer will complete the course made up of both facilities' sub-services. The two facilities are assumed invested respectively by an infrastructure owner and one subordinate facility owner, whose partnership is built on their capital investments. This paper presents a mathematical model of Stackelberg competition between the two facility owners to derive their optimal Nash equilibrium. In this study, each facility owner's profit is consisted of fixed revenue fractions of sold services, operating costs (including depreciation cost) and maintenance costs of her facility. The maintenance costs of one facility are incurred both by failures and deterioration due to usage. Moreover, for both facilities, failures are rectified immediately by minimal repairs and preventive maintenance is carried out at a fixed time epoch. Additional assumptions are also employed to develop the model such as customer arrivals are manipulated to follow a Poisson process, and each facility's lifetime is independently Weibull-distributed. The Stackelberg game proceeds as follows. At the first stage of decision making process, the infrastructure owner (acting as a leader) decides the allocation of revenue shares based on her self-interest. After observing the allocation of revenue shares, the subordinate facility owner determines her own optimal price of services. This paper investigates actions and reactions of the two partners in the system. Then analytical conditions are proposed to achieve a unique optimal Nash equilibrium. Finally, some suggestions for further research are discussed.

Hospital Marketing Strategies in Competitive Era : Positioning and Patient Satisfaction Strategies (경쟁시대의 병원마케팅전략 : 포지셔닝과 고객만족을 중심으로)

  • 이훈영;정기택
    • Health Policy and Management
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    • v.5 no.2
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    • pp.127-154
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    • 1995
  • The Korean hospital industry is rapidly changing along with the competition among hospitals. Until recently it was easy for hospitals to profit even without efficient management and competitive strategies. However, the increasingly intensive competition endanger their profits but also their survivals. Hospital managers have no choice but to seriously consider competitive management and marketing strategies to remain alive and prosper. This study introduces a useful methodology--perception map drawn using multidimensional scaling--for developing competitive strategies, and illustrates its application to developing a perception map of 9 Seoul-based general hospitals. We also suggest the concepts and examples of positioning strategies and patient satisfaction management system. One of the interesting findings is that the Samsung medical center which opened less than a year ago is ranked first in most aspects such as kindness, facilities, waiting time, and parking, and the second in clinical performance just after the Seoul National University Hospital.

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Study on the Role of Hospital Coordinators with System Dynamics Approach (병원 코디네이터도입이 병원경영성과에 미치는 영향분석)

  • Chung, Hee-Tae
    • Korean System Dynamics Review
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    • v.11 no.4
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    • pp.5-23
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    • 2010
  • The competition between hospitals has become an issue for many hospitals because of the sudden increased number of health providers. As the marketing or customer management have become important factors as means of competition, a number of hospital have been considered or already adopted the coordination system. A system dynamics model is developed to see the effect of the hospital coordination system. This paper after briefly explaining the structure of the system dynamics model, discusses the roles of the hospital coordination system with examples. The system dynamics model quantifies through simulations the process of effects of coordination system on the number of customers, productivities of employees (nurses and doctors), and finally the financial status. As a conclusions of the simulations and their analysis, it is concluded that coordination system could be more effective than the investment to the facilities. Since the study is based on only one hospital case, it is limited. However, it explains the mechanism of the coordination system quantitatively as well as qualitatively.

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