• Industrial Engineering and Management Systems
• /
• v.12 no.4
• /
• pp.317-329
• /
• 2013

In recent years, for the purpose of solving the problem regarding environment protection and resource saving, certain measures and policies have been promoted to establish a green supply chains (GSC) with material flows from collection of used products to reuse of recycled parts in production of products. In this study, we propose an optimal operation of the GSC while considering the collection incentive of the used products and quality for recycling of used products. Two types of decision-making approaches are used for product quantity, collection incentive of used products and lower limit of quality level of reusable parts in the used products for recycling in the GSC. One is the decision-making under an independent policy in decentralized supply chains where a retailer and a manufacturer make decisions so as to maximize profits individually. The other is the decision-making under a cooperative policy in centralized supply chains where a retailer and a manufacturer make decisions cooperatively so as to maximize the whole system's profit. Additionally, we also discuss supply chain coordination as a manufacturer-retailer partnership based on profit sharing. Furthermore, we show the effect of the quality of the reusable parts on the optimal decisions. The collection incentive of the used products was found to bring more profitability to the GSC activity.

• Industrial Engineering and Management Systems
• /
• v.13 no.2
• /
• pp.129-147
• /
• 2014

This study proposes an optimal operational policy for a green supply chain (GSC) where a retailer pays an incentive for collection of used products from customers and determines the optimal order quantity of a single product under uncertainty in product demand. A manufacturer produces the optimal order quantity of product using recyclable parts with acceptable quality levels and covers a part of the retailer's incentive from the recycled parts. Here, two scenarios for the product demand are assumed as: the distribution of product demand is known, and only both mean and variance are known. This paper develops mathematical models to find how order quantity, collection incentive of used products and lower limit of quality level for recycling affect the expected profits of each member and the whole supply chain under both a decentralized GSC (DGSC) and an integrated GSC (IGSC). The analysis numerically compares the results under DGSC with those under IGSC for each scenario of product demand. Also, the effect of the quality of the recyclable parts on the optimal decisions is shown. Moreover, supply chain coordination to shift the optimal decisions of IGSC is discussed based on: I) profit ratio, II) Nash bargaining solution, and III) Combination of (I) and (II).

• Journal of Families and Better Life
• /
• v.21 no.4
• /
• pp.41-53
• /
• 2003

The purpose of this study is to understand and verify the incentives as an important market environment and to help consumers use them effectively, and consequently to improve the consumer welfare. This study examined the representative incentive, the sales promotions which can effect on the consumer decision making process and current issues of them. For the purpose, a coffee specialty store was hypothesized and the subjects were 20∼30 years old, since the sales promotions can be more effective toward the younger consumers making their decisions low-involvement goods and services. The conclusions can be summarized as follows; Consumers understand the advantages and disadvantages of sales promotion very well, and use them rationally and usefully to maximize their satisfaction. the sales promotions act as incentives in the all steps of decision making processes. Generally, consumers prefer to get things at a good price, so in this survey, the discount coupons and the point accumulative membership had more effect than others. Consumers pointed out controversial issues of the sales promotions as follows: the sales promotions could bring about cost rising and unnecessary and/or impulse buying, and stir up speculative motivation. These are common serious problems in the sales promotions. The sales promotions are very useful tools in promoting sales but not fundamental in the long run. Marketers and manufacturers should keep it in mind that the best way to satisfy the consumers is to keep all things in good quality and moderate price.

• The Journal of Economics, Marketing and Management
• /
• v.11 no.2
• /
• pp.23-32
• /
• 2023

Purpose: This study examines the effect of full information disclosure on seller profit when there exists information asymmetry between sellers and buyers, focusing on the risk averseness of buyers. By investigating the interaction between product quality and perceived risk through online sales data, we attempt to figure out the incentive structure of full information disclosure specifically when buyers are risk-averse, so that we can suggest more feasible information disclosure strategy to sellers. Research design, data and methodology: Our empirical model analyzes the sales data of collectible goods from a major online seller using Poisson regression. In our model, we have specifically considered risk-averseness of buyers by estimating the interaction effect between the product quality and perceived risk on seller profit, aiming for a more precise empirical analysis on sellers' incentive structure of full disclosure. Results: Our empirical analysis strongly supports the effect of interaction between product quality and perceived risk, showing that the incentive for full disclosure is much stronger when product quality is higher, and vice versa. Therefore, sellers are strongly encouraged to voluntarily reveal product weaknesses when their product quality is higher than average, while it is more profitable to hide any product defects when quality claim is lower than average. Conclusions: This study supports the related literature by confirming economic incentives for full disclosure, and also supplements and strengthens previous studies by presenting that the effect of interaction between product quality and perceived risk strongly affects seller profit. Our unique finding supports both mandatory disclosure and voluntary disclosure arguments and presents practical implications to marketing managers by suggesting that seller's incentive for revealing weaknesses depends on the level of seller's product quality.

• Journal of Labour Economics
• /
• v.37 no.1
• /
• pp.59-85
• /
• 2014

This paper analyses an impact of wage scheme and transparency of performance evaluation on the productivity. The main findings in this paper are as follows: First, the effect of wage scheme based on seniority system on the productivity is worse off than the performance pay. Second, there is a positive relationship between an incentive and the productivity, but, in the case of firms which individually informs the results of performance evaluation to their workers, it shows the hump-shaped relationship. Third, though the wage scheme is based on the performance, if the evaluation system is not transparent, the impact of incentive on the productivity is disappeared. Consequently, this paper implies that the appropriate incentive and the transparent performance evaluation system are required so as to improve the productivity.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.42 no.1
• /
• pp.1-17
• /
• 2017

This study investigates a buyer-supplier supply chain, in which a buyer delegates the production process to a supplier as in many practices. The consumer's buying intention and overall supply chain performance are affected not only by the buyer's decision on sales price but also by the supplier's decision on product quality. Therefore, the buyer has a motivation to control the supplier's quality investment. Among various incentive schemes that the buyer can adopt in practice, we consider a revenue-sharing contract and investigate its unique characteristics. By comparison with a typical wholesale price contract, we reveal that the revenue-sharing contract can enhance supply chain's overall performance, including quality, demand, and profits of not only overall supply chain but also each player. We contribute to the academia and the supply chain practice by providing important guidelines in adopting incentive schemes and effectively managing product quality in a supply chain.

• Journal of Labour Economics
• /
• v.32 no.1
• /
• pp.1-29
• /
• 2009

This paper exploited the data reported in BK21 program of professors' research performances and analyzed the effects of reputational concerns on professors' research performances. According to the established theory of reputation effects in incentive provision, a professor's research incentive gets stronger if one's ability is less known, and one's colleagues' abilities are better known. We confirmed this theoretical hypothesis of reputation effects. Moreover, we found that a professor's research incentive was larger under inter-generational grouping in terms of age distribution and homogeneous grouping in terms of ability uncertainty.

• Environmental Engineering Research
• /
• v.19 no.4
• /
• pp.369-373
• /
• 2014

In view of the problem of the invalidity of the incentive mechanism of the ecological subsidies, which is due to the information asymmetry between the government's supervision and the enterprise endeavor to fulfill their ecological responsibilities, this paper attempts to analyze the supervision of ecological subsidies based on the Principal-agent Model. Two conclusions are drawn: firstly, the government's supervision regarding the effect of the enterprises' fulfilling the ecological responsibilities can significantly reduce the information asymmetry; secondly, the government's incentive strength and the enterprises' endeavor level of fulfilling the ecological responsibilities are both improving the surveillance dynamics. Here is the suggestion: with the increasing of the surveillance dynamics of the government and the transparency of the enterprises' fulfilling the ecological responsibilities, the government should meanwhile increase the subsidies incentive strength, therefore, to promote the effort level of the enterprises' fulfilling the ecological responsibilities to approach to the Pareto optimal value.

• Asian Journal of Innovation and Policy
• /
• v.1 no.2
• /
• pp.148-167
• /
• 2012

This paper analyzes the impact of the change in telecommunication regulation changes including the unification of telecommunication service on network investment. The unification of telecommunication service plays a role of separating behavior regulation from entrance regulation and reducing entrance constraints. Therefore, it is expected that the market spillover effect is high through the improvement of behavior regulation. In addition, the effects of the other regulation changes in the 2010 Telecommunications Business Act revision are analyzed. This paper discusses critical factors affecting the decision making process in respect to the firm level and analyzes the impact path guiding investment and innovation. The key findings are as follows. First, the impact of entrance deregulation depends on the intensity of deregulation. If the intensity is not high, this regulation increases the incentive on investment and innovation. However, if the intensity is high as shown in abolishing of licensing, it affects the incentive negatively. Second, if interconnection regulation focuses on existing facilities or the intensity is not strong, this light handed regulation might increase investment and innovation. However, if interconnection obligation is expanded to the facility not constructed or the facility applying new technology, this regulation might deteriorate investment. Third, price deregulation increases the competition of service but it also increases the business opportunity, which means positive effect on investment. Finally, the paper proposes the guideline for telecommunications policy.

• International Journal of Quality Innovation
• /
• v.9 no.2
• /
• pp.129-147
• /
• 2008

This research is to investigate the effect of the improvement of investment environments with investment incentive on Korean national economy by looking into the foreign investment support system in Korea. To this end, first research model was set up based on our literary study and case study was conducted on 150 foreign companies that were located in industrial complex for foreign companies, received the tax benefit and government subsidization. And it was found that even though the foreign companies were contributing to the national economy in general such as in the area of production, export, employment, development of technology, there was no significant contributory difference between the investment incentive beneficiary and non-beneficiary foreign companies. Therefore it deemed reasonable to reconsider the way Korean government supports foreign companies in Korea and to reinforce foreign companies' relevance to national policy agenda with additional incentives to foreign companies located in comparatively less developed areas. As a way to promote foreign investment, promotion of investment infra such as improvement of follow-up services, openness to foreign investment, industrial deregulations in capital area, revitalization of free economic zone, efficient system to promote foreign investment and the reinforcement of public relations were considered necessary, especially the upgrading of economic structure and the integrated management of domestic and foreign investors deemed necessary for the optimal distribution of the industries.