• The Journal of Fisheries Business Administration
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• v.43 no.1
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• pp.35-48
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• 2012

Inverse demand models are well established as market demands in theory and practice of the existing literature. However, the derivation and its interpretation of individual demands from the market demands are not well known in the literature. This paper analyzes the fish market in Korea by the inverse demand model and shows how we deduce the consumer's responses from the market responses when the markets determine the prices by the quantities demanded. It illustrates empirically how this can be done applying to the korean fish market data. The empirical results show that all fishes are price inflexible and mackerels and hairtails are scale flexible in the market demand while mackerels, hairtails, and croakers are price elastic and mackerels and hairtails are income inelastic in the individual demand. The methodology and empirics used in the paper will make a contribution to the existing literature especially for the purpose of recovering consumer's demand from the market demand, thus implementing the policies to administer the fish markets.

• KIEE International Transactions on Power Engineering
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• v.5A no.4
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• pp.403-411
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• 2005

At present, the Cournot model is one of the most commonly used theories to analyze the gaming situation in an oligopoly type market. However, several problems exist in the successful application of this model to the electricity market. The representative one is obtaining the inverse demand curve able to be induced from the relationship between market price and demand response. In the Cournot model, each player offers their generation quantity to obtain maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect the real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears over the long-term through statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as the trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.59 no.12
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• pp.2143-2149
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• 2010

Market price and curtailment amounts of the Demand Resource Market(DRM) are determined by competition between electricity consumers. An important aspect of the DRM involves the assessment of strategic behavior of participants for maximizing their profits. This paper presents economic equilibrium models for simulating imperfect competition among electricity consumers in the DRM and analyzes the models at Nash Equilibrium of Game Theory. The proposed demand functions and supply functions of DRM are based on the Demand Resource Market Rules in Korean electricity market. Simulation results show that the models are adequate for obtaining Nash Equilibrium of consumers' competitive curtailment.

• Current Photovoltaic Research
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• v.5 no.3
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• pp.100-104
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• 2017

This paper analyzes the correlation between Net Benefit Test (NBT) and System marginal price (SMP), which has a significant impact on the allocation of demand response (DR) resources in resource scheduling and commitment (RSC) process, based on the performance data of the demand resource market which has been established in 2014. Demand resources compete with generation resources in the RSC process, and it is prescribed to use demand resources only when net benefit occurs. Analysis result shows that the larger the SMP than the Net Benefit Threshold Price (NBTP), the more the winning bid of demand response resource was. It is interpreted that the introduction of NBT in DR market is justified. The demand resource market has been steadily growing. It is required to expand the scope of resources up to the small-sized DR, and to expand the functionalities of demand resources not only in the current energy market but also in the reserve market in the future. In order for that, institutional improvements are required.

• Journal of Information Technology Services
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• v.14 no.4
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• pp.185-197
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• 2015

As the uncertainty of demand in B2B electronics market has increased, firms need a strong method to estimate the market demand. An accurate prediction on the market demand is crucial for a firm not to overproduce or underproduce its goods, which would influence the performance of the firm. However, it is complicated to estimate the demand in a B2B market, particularly for the private sector, because firms are very diverse in terms of size, industry, and types of business. This study proposes both qualitative and quantitative demand forecasting approaches for B2B PC products. Four different measures for predicting PC products in B2B market with consideration of the different PC uses-personal work, common work, promotion, and welfare-are developed as the qualitative model's input variables. These measures are verified by survey data collected from experts in 139 firms, and can be applied when individual firms estimate the demand of PC goods in a B2B market. As the quantitative approach, the multiple regression model is proposed and it includes variables of region, type of industry, and size of the firm. The regression model can be applied when the aggregated demand for overall domestic PC market needs to be estimated.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.54 no.2
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• pp.79-87
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• 2005

At present Cournot model is one of the most commonly used theories to analyze the gaming situation in oligopoly market. But there exist several problems to apply this model to electricity market. The representative one is to obtain the inverse demand curve able to be induced from the relationship between market price and demand response. In Cournot model, each player offers their generation quantity to accomplish maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears on the long-term basis through the statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium.

• Proceedings of the KIEE Conference
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• 2005.11b
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• pp.168-170
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• 2005

At present Cournot model is one of the most commonly used theories to analyze the gaming situation in oligopoly market. But there exist several problems to apply this model to electricity market. The representative one is to obtain the inverse demand curve able to be induced from the relationship between market price and demand response. In Cournot model, each player offers their generation quantity to accomplish maximum profit, which is accomplished by reducing their quantity compared with available total capacity. As stated above, to obtain the probable Cournot equilibrium to reflect real market situation, we have to induce the correct demand function first of all. Usually the correlation between price and demand appears on the long-term basis through the statistical data analysis (for example, regression analysis) or by investigating consumer utility functions of several consumer groups classified as residential, industrial, and commercial. However, the elasticity has a tendency to change continuously according to the total market demand size or the level of market price. Therefore it should be updated as trading period passes by. In this paper we propose a method for inducing and updating this price elasticity of demand function for more realistic market equilibrium

• Journal of Korean Society of Industrial and Systems Engineering
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• v.24 no.66
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• pp.37-45
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• 2001

Because the structure of the economy is being changed from product-oriented and company-centered economy to service-oriented and customer-centered economy, and the market competition is varying with the competition of non-price factors, the importance for customer service of logistics system is being increased. Thus, the level of customer service should be represented as an element of the logistics decision and the facility location decision. The level of customer service provided by logistics system has an effect on customers\` purchase decisions, hence on the market demand. That is, the market demand is elastic for customer service as it is influenced by product price. Considering the effect of customer service on demand, this study develops the market area which each facility will serve. That area is circular, and distance norm is considered Euclidean and Rectilinear (or Manhattan) distance norm. The market demand for product at a particular area is affected by the level of customer service that facility provides, and the relationship between the market demand and the level of customer service is represented with a mathematical function.

• KIPS Transactions on Computer and Communication Systems
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• v.1 no.3
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• pp.133-142
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• 2012

Cournot model is one of representative models among many game theoretic approaches available for analyzing competitive market models. Recent years have witnessed various kinds of attempts to model competitive electricity markets using the Cournot model. Cournot model is appropriate for oligopoly market which is one characteristic of electric power industry requiring huge amount of capital investment. When we use Cournot model for the application to electricity market, it is prerequisite to assume the downward sloping demand curve in the right direction. Generators in oligopoly market could try to maximize their profit by exercising the market power like physical or economic withholding. However advanced electricity markets also have demand side bidding which makes it possible for the demand to respond to the high market price by reducing their consumption. Considering this kind of demand reaction, Generators couldn't abuse their market power. Instead, they try to find out an equilibrium point which is optimal for both sides, generators and demand. This paper suggest a quantitative analysis between market variables based on econometrics for estimating demand responses in smart grid environment.

• The Journal of Industrial Distribution & Business
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• v.10 no.1
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• pp.19-27
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• 2019

Purpose - The purpose of the paper is to examine disconnection between supply and demand shipping market, which means shipowner has determined to raise capacity in bust period. Research design, data, and methodology - The research method to be applied is first to look into conceptual theory about shipping market, and then to study imbalance of supply and demand situations in shipping on crisis, and next, to analyses paradoxical aspects traced. Results - Shipping market is a volatile and cyclic characteristics, and its situations have to be examined very carefully. Since financial crisis has broken up in 2008, it is natural to think that world trade volumes has reduced rapidly, which means demand for shipping service has fallen, and accordingly, tonnage should be stagnated as well. However, shipping companies have put capacity into market as unexpectedly. This is because of economy of scale and time lag. Here, this can be explained in terms of paradox that is proved in this paper. Conclusions - From careful research in this paper, it is found that supply and demand are not always got along with market situations, in other words supply side could be working well, in spite of depression time of demand situations in world shipping markets.