• Title/Summary/Keyword: incentive structure

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Optimal Incentives for Customer Satisfaction in Multi-channel Setting (멀티채널에서의 고객만족제고 인센티브 연구)

  • Kim, Hyun-Sik
    • Journal of Distribution Research
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    • v.15 no.1
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    • pp.25-47
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    • 2010
  • CS is one of the major concerns of managers in the world because it is well known to be a key medium construct for firms' superior outcome. One of the major agents for CS management is retailers. Firms try to manage not only employees but also retailers to promote CS behaviors. And so diverse incentives are used to promote their CS behaviors under diverse channel setting such as multi-channel. However in spite of the rising needs there has been scarce studies on the optimal incentive structure for a manufacturer to offer competing retailers at the multi-channel. In this paper, we try to find better way for a manufacturer to promote the competing retailers' CS behaviors. We investigated how to promote the retailers' CS behavior via game-theoretic modeling. Especially, we focus on the possible incentive, CS bonus type reward introduced in the studies of Hauser, Simester, and Wernerfelt(1994) and Chu and Desai(1995). We build up a multi stage complete information game and derive a subgame perfect equilibrium using backward induction. Stages of the game are as following. (Stage 1) Manufacturer sets wholesale price(w) and CS bonus($\eta$). (Stage 2) Both retailers in competition set CS effort level($e_i$) and retail price($p_i$) simultaneously. (Stage 3) Consumers make purchasing decisions based on the manufacturer's initial reputation and retailers' CS efforts.

    Structure of the Model We investigated four issues about the topic as following: (1) How much total incentive is adequate for a firm of a specific level of reputation to promote retailers' CS behavior under multi-channel setting ?, (2) How much total incentive is adequate under diverse level of complimentary externalities between the retailers' CS efforts to promote retailers' CS behavior?, (3) How much total incentive is adequate under diverse level of cost to make CS efforts to promote retailers' CS behavior?, (4) How much total incentive is adequate under diverse level of competition between retailers to promote retailers' CS behavior? Our findings are as following. (1) The higher reputation has the manufacturer, the higher incentives for retailers at multi-channel are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the manufacturer's reputation level(a) under some parameter conditions(b=1/2;c=0;$\beta$=1/2). (2) The bigger complimentary externalities exists between the retailers' CS efforts, the higher incentives are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the complimentary externalities level($\beta$) under some parameter conditions(a=1;b=1/2;c=0). (3) The higher is the retailers' cost, the lower incentives are required in the equilibrium.
    shows the decreasing pattern of optimal incentive level along the cost level(c) under some parameter conditions(a=1;b=1/2;$\beta$=1/2). (4) The more competitive gets those two retailers, the higher incentives for retailers at multi-channel are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the competition level(b) under some parameter conditions(c=0;a=1;$\beta$=1/2). One of the major contribution points of this study is the fact that this study is the first to investigate the optimal CS incentive system under multi-channel setting.

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Private Value of Innovation (Patents) (기술혁신(특허)의 사적가치)

  • Kim, Byung-Woo
    • Journal of Korea Technology Innovation Society
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    • v.14 no.2
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    • pp.246-259
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    • 2011
  • Examining the relation between market structure and the value of innovation is important for competition and STI policy. If the value is large in a specific industry structure, government may lead the industry to take that form to enhance innovation. Our simple calibration in the case of linear demand and constant Me results in the conclusion that the incentive for R&D in the case of major and minor innovation in Cournot competition is less than that of merger and cooperative R&D. This emphasizes again "necessary evil" as a monopoly for innovation.

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The Comparative Study on Incentive System for Integrated Design of Low-Energy Buildings (저에너지건물 통합설계 인센티브 체계 비교 연구)

  • Lee, Byungyun
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.17 no.6
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    • pp.129-139
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    • 2016
  • The purpose of this paper was to comparatively investigate the efficient building incentives in Korea and foreign countries and to seek strategies to enhance low energy building integrated design market infrastructure in Korea. The structure of incentive policies were composed of four main component: 1) types of financial aids and beneficiaries, 2) energy performance criteria and verification methods, 3) supports for low energy building integrated design, and 4) funding sources for incentive programs. Every overseas incentive program has adopted a design team incentive along with building owners incentive and the range of target buildings have been extended from new construction to remodeling projects. The main system of the program is the performance standard through which projects were investigated and the level of incentive are decided. Initially, the integrated performance has been investigated through simulation methods, but the construction performance evaluation and energy monitoring methods are emerging. In addition, the direct support and educational support for integrated design has been provided to enhance the foundation of relative markets. Financial funding is also a key component of the program and more aggressive funding strategies have been adopted.

A Study on the Effect of the Improvement of Investment Environment with Investment Incentive on National Economy

  • Moon, Jae-Young;Lee, Won-Hee;Choi, Pyeong-Rak;Suh, Yung-Ho
    • International Journal of Quality Innovation
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    • v.9 no.2
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    • pp.129-147
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    • 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.

Sellers' Economic Incentives to Disclose Negative Information in Online Markets

  • HUH, Seung
    • The Journal of Economics, Marketing and Management
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    • v.9 no.2
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    • pp.33-43
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    • 2021
  • Purpose: This study aims to verify sellers' economic incentives for voluntarily disclosing negative information in online markets and provide practical guidelines to online sellers in terms of whether, when, and how sharing low quality to buyers increase sales. Research design, data and methodology: Our model examines the number of bidders in Internet auctions to measure potential demand and uses count data analysis following previous studies that have also analyzed the number of bidders in auctions. After checking over-dispersion and zero-inflation in our data, we have run a Poisson regression to analyze the effect of sharing negative information on sales. Results: This study presents a counterintuitive result that low-quality sellers can increase their demand by fully disclosing negative information in an online market, if appropriate risk-reducing methods are employed. Our finding thus shows that there exists economic incentive for online sellers to voluntarily disclose negative information about their products, and that the context of transactions may affect this incentive structure as the incentive varies across product categories. Conclusions: As the positive impact of disclosing negative information has rarely been studied so far, this paper contributes to the literature by providing a unique empirical analysis on the impact of sellers' honesty on sales. By verifying economic incentives of disclosing low quality with actual online sales data, this study suggests practical implications on information disclosure strategy to many online sellers dealing with negative information.

Improvement Directions of Interconnection Charge Regimes Between Networks (경영효율성을 고려한 접속료규제제도 개선방안)

  • 권수천
    • Journal of the Korea Institute of Information and Communication Engineering
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    • v.2 no.4
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    • pp.473-484
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    • 1998
  • The current interconnection charge regimes is based in fully distributed costing method. Basically this method doesn't give the incument carrier the incentive to promote efficient business operations. In this paper, 1 suggest the adoption of price cap regulation to interconnection charge as incentive schemes and review important considerations in its applications. Additionally I suggest the basic structure of the network costing model for applications of incremental costing method.

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Wage Structure in Hospitals (병원의 임금체계 실태 - 부산시내 병원을 중심으로 -)

  • Kim, Jung-Hwa;Park, Jun-Han;Lee, Key-Hyo
    • Korea Journal of Hospital Management
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    • v.2 no.1
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    • pp.162-182
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    • 1997
  • This study was carried out to assess the current status of hospital wage structure and to find out the characteristics and problems in the current hospital wage structure. so as to provide empirical data for establishing a rational wage structure. The data were collected from administrative personnels in charge of wage management in 31 hospitals by using a structured questionnaire through direct visiting and mailing in Pusan Metropolitan City. The major findings in this study were as follows: First, the hospital wage structure applied differently to the basic wages between doctors and the other employees. The wage structure for doctors included performance rate of 51.6%, followed by a synthesis rate of 29.0%, while the wage for the other employees had the synthesis rate of 74.2%, followed by the seniority rate of 12.9%. Second, the wage consisted of a basic wage for 57.5%. the allowance for 21.1% and monthly installed bonus for 21.4%, and the basic wage comprised 68.3% of the total wage for doctors, as compared to 51.9% for nurses and medical technicians and 52.4% for administrative and managerial personnel. The annual rate of the bonus was average 460%, and 96.8% of the hospital did not consider personnel preformance appraisal when paying the bonus. Third, 80.6% of the hospitals applied the legal rate to the retirement allowance while 19.4% applying cumulative rates more than the legal rate, and all of university hospitals applied cumulative rates. Retirement reserves were practiced only in 54.9% of the hospitals. Forth, many hospitals seemed to be interested in applying graded wage system according to performance, by showing that 42.9% of the hospitals were planning to apply it in the future, despite only 9.7% practicing it. Fifth, the wage structure appeared to be complicated due to various kinds of allowances. The kind of the allowances varied among hospitals, ranging from 2 to 26 kinds, and increased as the size of hospital was larger. Sixth, the opinions leading to improve the basic wage structure favored the seniority rate for 51.6% either to maintain the present seniority rate(16.1%) or to apply the incentive pay in addition to the senior rate(35.5%). and also favored the performance rate for 35.5%, followed by the job rate for 12.9%. In conclusion, the current hospital wage structure seemed to be too complicated to reflect personal ability, contribution and performance and to become a big barrier to inducing worker's motivation and to strengthening in competitveness. Therefore it is suggested that the current wage structure should be revised to the one emphasizing on job and ability base with considering characteristics and situation of the hospital, rather than seniority factors.

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Investment Incentive for Capacity Supply in a Period of Introduction of competition (경쟁체제 도입기의 수급안정화를 위한 설비투자 인센티브 설정 연구)

  • Kim, Chang-Soo;Rhee, Chang-Ho;Jin, Byung-Mun
    • Proceedings of the KIEE Conference
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    • 2000.07a
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    • pp.406-408
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    • 2000
  • Recently, Korea's electric industry is in the midst of a period of profound changes in the structure and function, including the introduction of market competition in the generation sector. Therefore, it is difficult to promote long-term capacity planning and new generating capacity construction which have been driven by KEPCO so far, after the introduction of market competition, so new generating capacity construction and security of reserve margin is needed through self·regulation plan of private generation producers by market mechanism. According to the competition in the generation sector, a new paradigm is necessary to the long-term capacity planning driven by the Government. This paper analyzes the plan and the incentive level able to guide the new generation capacity construction considering the uncertainty risk in a period of introduction of competition. In addition, this paper analyzes the plan able to guide the new capacity construction by market function at the stage which market become established and Government's role to solve the anxiety about the capacity supply and demand.

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The Effects of Institutional and Market Factors on Nurse Staffing in Acute Care Hospitals (의료기관과 시장특성이 간호사 확보수준에 미치는 영향)

  • Kim, Yun-Mi;Cho, Sung-Hyun;Jun, Kyung-Ja;Go, Su-Kyung
    • Health Policy and Management
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    • v.17 no.2
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    • pp.68-90
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    • 2007
  • Nurse staffing level is an important factor that influences the quality of health service and patient outcomes. This study was carried out to examine the current state of acute hospital nurse staffing and find out factors that affect the nurse staffing level. Nurse staffing of individual hospitals was measured using the number of registered nurses per 100 beds. Descriptive and multiple regression analyses were conducted using 592 acute care hospitals' data. Regression model included structure factors such as referral level, ownership, medical and general staffing, and financial outcome factors such as occupancy rate, inpatient and outpatient revenues. Market characteristics included strength of competition, supply of nurses, and income and health status level of consumers. The average number of nurses per 100 beds was 28 and showed a great variation according to the referral level. Regression model explained this variation as much as 76.87%. Hospital structure variables which affecting the hospital nurse staffing level positively were ICU bed ratio, the staffing level of specialist, training doctor and employees except doctor and nursing personnel, while the negative factor was nurse aid staffing level. General hospitals employed more nurses than hospitals. Among outcome characteristics, occupancy rate and the amount of health insurance inpatient revenue affected positively on the hospital nurse staffing level. The more supply of the new nurse and the higher consumer income and health status in the medical service markets, the more nurses were employed by the medical institutes. According to the study result, hospitals employed more nurses when they had more financial incentive by increasing nurses. This means appropriate hospital incentive policy and regulation policy, which hospital violate nurse staffing level have to pay penality, should be needed. Clarifying job description between nurses and nurse aids and the reentry program for unemployed experienced nurses will be helpful to increase nurse staffing level.

Optimum design and vibration control of a space structure with the hybrid semi-active control devices

  • Zhan, Meng;Wang, Sheliang;Yang, Tao;Liu, Yang;Yu, Binshan
    • Smart Structures and Systems
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    • v.19 no.4
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    • pp.341-350
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    • 2017
  • Based on the super elastic properties of the shape memory alloy (SMA) and the inverse piezoelectric effect of piezoelectric (PZT) ceramics, a kind of hybrid semi-active control device was designed and made, its mechanical properties test was done under different frequency and different voltage. The local search ability of genetic algorithm is poor, which would fall into the defect of prematurity easily. A kind of adaptive immune memory cloning algorithm(AIMCA) was proposed based on the simulation of clone selection and immune memory process. It can adjust the mutation probability and clone scale adaptively through the way of introducing memory cell and antibody incentive degrees. And performance indicator based on the modal controllable degree was taken as antigen-antibody affinity function, the optimization analysis of damper layout in a space truss structure was done. The structural seismic response was analyzed by applying the neural network prediction model and T-S fuzzy logic. Results show that SMA and PZT friction composite damper has a good energy dissipation capacity and stable performance, the bigger voltage, the better energy dissipation ability. Compared with genetic algorithm, the adaptive immune memory clone algorithm overcomes the problem of prematurity effectively. Besides, it has stronger global searching ability, better population diversity and faster convergence speed, makes the damper has a better arrangement position in structural dampers optimization leading to the better damping effect.