• Title/Summary/Keyword: optimal price setting

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Estimating User Utility Functions for Network-Resource Pricing (네트워크 자원 가격정책을 위한 사용자 유틸리티 함수 추정법)

  • Park, Sun-Ju
    • Journal of KIISE:Information Networking
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    • v.33 no.1
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    • pp.103-112
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    • 2006
  • Priority-based network service has been widely adopted for the Internet traffic management in the context of IETF differentiated services, and computing optimal prices for such priority-based service is the key topic in many pricing literature. While the equilibrium analysis has been commonly used to this end, many have criticized the validity of the underlying assumption of equilibrium analysis that user utility functions are precisely known. In this paper, we propose a solution for bridging the gap between the existing theoretical work on optimal pricing and the unavailability of precise user utility information in real networks. In the proposed method, the service provider obtains more and more accurate estimates of user utility functions from the initial imprecise knowledge by iteratively changing the price of service levels and observing the users' decisions under the changed price. Our contribution is two-fold. First, we have developed a general principle for estimating the user utility functions. Second, we have developed a novel method for setting the prices that can optimize the extraction of the knowledge about user utility functions. The extensive simulation results demonstrate the effectiveness of our method.

A Suggestion of a Target Costing Concept for Optimal Building Design (적정 건물 설계를 위한 Target Costing 개념 제안)

  • Ahn, Joon-Suk
    • Journal of the Korea Institute of Building Construction
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    • v.10 no.6
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    • pp.137-143
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    • 2010
  • Target Costing is a modern cost management technique used in changeable market conditions. The target cost is set by subtracting the sum of production costs and profits from the market price. The purpose of this present study is to review Target Costing as a useful concept which integrates the project development process with cost management. "Minimum Waste, Maximum Value" could be achieved by setting up guidelines for optimal building design at the beginning of the project development phase. This effective budget management method will help rectify Korea's overspending problems in the area of government building construction projects.

A Study on the Productivity Improvement of the Dicing Blade Production Process (다이싱 블레이드 제조공정의 생산성향상에 관한 연구)

  • Mun, Jung-Su;Park, Soo-Yong;Lee, Dong-Hyung
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.39 no.3
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    • pp.147-155
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    • 2016
  • Industry 4.0's goal is the 'Smart Factory' that integrates and controls production process, procurement, distribution and service based on the fundamental technology such as internet of the things, cyber physical system, sensor, etc. Basic requirement for successful promotion of this Industry 4.0 is the large supply of semiconductor. However, company I who produces dicing blades has difficulty to meet the increasing demand and has hard time to increase revenue because its raw material includes high price diamond, and requires very complex and sensitive process for production. Therefore, this study is focused on understanding the problems and presenting optimal plan to increase productivity of dicing blade manufacturing processes. We carried out a study as follows to accomplish the above purposes. First, previous researches were investigated. Second, the bottlenecks in manufacturing processes were identified using simulation tool (Arena 14.3). Third, we calculate investment amount according to added equipments purchase and perform economic analysis according to cost and sales increase. Finally, we derive optimum plan for productivity improvement and analyze its expected effect. To summarize these results as follows : First, daily average blade production volume can be increased two times from 60 ea. to 120 ea. by performing mixing job in the day before. Second, work flow can be smoother due to reduced waiting time if more machines are added to improve setting process. It was found that average waiting time of 23 minutes can be reduced to around 9 minutes from current process. Third, it was found through simulation that the whole processing line can compose smoother production line by performing mixing process in advance, and add setting and sintering machines. In the course of this study, it was found that adding more machines to reduce waiting time is not the best alternative.

Application of Coordination Policies for Fuzzy Newsvendor Model

  • Ryu Kwang-Yeol;Choi Hon-Zong;Lee Seok-Woo;Jung Moo-Young;Cha Young-Pil
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2006.05a
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    • pp.187-192
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    • 2006
  • In the absence of a clear command and control structure, a key challenge in supply chain management is the coordination and alignment of the supply chain members who pursue divergent and often conflicting goals. The newsvendor model is typically used as a framework to quantify the cost of misalignment and to assess the impact of coordination initiatives. This paper considers a fuzzy approach for the newsvendor problem which includes a single manufacturer and a single retailer. We use several fuzzy parameters in the model such as the demand, the wholesale price, and the market sales price. We apply a coordination policy, referred to as buyback, to solve the fuzzy newsvendor problem. Based on the buyback policy, the optimal order quantity of the retailer can be computed, and the possible profits of the members in the supply chain can be calculated with minimum sharing of private information. Focusing on the fuzzy model with buyback policy for the newsvendor problem, we illustrate exemplary fuzzy models. We also illustrate an integration model, which extends a single-manufacturer-single-retailer model to the single-manufacturer-multiple-retailer setting. In the extended model, we consider three coordination policies including quantity discount, profit sharing, and buyback, as well as non-coordination case.

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Multi-homing in Heterogeneous Wireless Access Networks: A Stackelberg Game for Pricing

  • Lee, Joohyung
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.12 no.5
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    • pp.1973-1991
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    • 2018
  • Multimedia applications over wireless networks have been evolving to augmented reality or virtual reality services. However, a rich data size compared to conventional multimedia services causes bandwidth bottlenecks over wireless networks, which is one of the main reasons why those applications are not used widely. To overcome this limitation, bandwidth aggregation techniques, which exploit a multi-path transmission, have been considered to maximize link utilization. Currently, most of the conventional researches have been focusing on the user end problems to improve the quality of service (QoS) through optimal load distribution. In this paper, we address the joint pricing and load distribution problem for multi-homing in heterogeneous wireless access networks (ANs), considering the interests of both the users and the service providers. Specifically, we consider profit from resource allocation and cost of power consumption expenditure for operation as an utility of each service provider. Here, users decide how much to request the resource and how to split the resource over heterogeneous wireless ANs to minimize their cost while supporting the required QoS. Then, service providers compete with each other by setting the price to maximize their utilities over user reactions. We study the behaviors of users and service providers by analyzing their hierarchical decision-making process as a multileader-, multifollower Stackelberg game. We show that both the user and service provider strategies are closed form solutions. Finally, we discuss how the proposed scheme is well converged to equilibrium points.

Comparative Study of Automatic Trading and Buy-and-Hold in the S&P 500 Index Using a Volatility Breakout Strategy (변동성 돌파 전략을 사용한 S&P 500 지수의 자동 거래와 매수 및 보유 비교 연구)

  • Sunghyuck Hong
    • Journal of Internet of Things and Convergence
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    • v.9 no.6
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    • pp.57-62
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    • 2023
  • This research is a comparative analysis of the U.S. S&P 500 index using the volatility breakout strategy against the Buy and Hold approach. The volatility breakout strategy is a trading method that exploits price movements after periods of relative market stability or concentration. Specifically, it is observed that large price movements tend to occur more frequently after periods of low volatility. When a stock moves within a narrow price range for a while and then suddenly rises or falls, it is expected to continue moving in that direction. To capitalize on these movements, traders adopt the volatility breakout strategy. The 'k' value is used as a multiplier applied to a measure of recent market volatility. One method of measuring volatility is the Average True Range (ATR), which represents the difference between the highest and lowest prices of recent trading days. The 'k' value plays a crucial role for traders in setting their trade threshold. This study calculated the 'k' value at a general level and compared its returns with the Buy and Hold strategy, finding that algorithmic trading using the volatility breakout strategy achieved slightly higher returns. In the future, we plan to present simulation results for maximizing returns by determining the optimal 'k' value for automated trading of the S&P 500 index using artificial intelligence deep learning techniques.

Exploring Spatial Distribution of Empty Houses and Vacant Land Due to Population Decrease in Mokpo (인구 감소 현상에 따른 목포시 빈집 및 공지의 공간적 분포 전망)

  • Jo, Young-Woo;Choi, You-Bin;Park, Chan
    • Journal of the Korean Society of Environmental Restoration Technology
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    • v.23 no.2
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    • pp.33-47
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    • 2020
  • With population losses and stagnant or depressed economies, the local governments embrace shrinkage and accept having a significantly smaller population. Both the initial and ongoing causes of shrinkage hold dramatic effects on the city and its remaining residents. In this context, vacant land increases as an overabundance of unused infrastructure is demolished and municipalities become burdened with increasing maintenance costs of this land. The result is that vacant land often experiences minimal management relative to social norms and have chance to provide a setting for ecological processes with urban rightsizing strategy. Therefore, urban ecosystems undergo major shifts in structure and function. We need to better understand the possibilities of where and how much of houses and land will be abandoned to assist land planners and policymakers to mitigate conflict between optimal ecological and sociological outcomes. This article, therefore, aims to identify distributional characteristics of vacant houses and lands with case study of Mokpo. The study found and verified affecting factors of vacant houses and lands by type through the use of a Maxent model and spatial data that explained housing choice and preference theory. We can predict the vacancies with the spatial variables such as land price, the population ratio over 65, and the distance from security facility. Based on the analysis, the ways of managing housing and land vacancy for sustainable development and ecological restoration method are discussed.

The Impact of Market Environments on Optimal Channel Strategy Involving an Internet Channel: A Game Theoretic Approach (시장 환경이 인터넷 경로를 포함한 다중 경로 관리에 미치는 영향에 관한 연구: 게임 이론적 접근방법)

  • Yoo, Weon-Sang
    • Journal of Distribution Research
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    • v.16 no.2
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    • pp.119-138
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    • 2011
  • Internet commerce has been growing at a rapid pace for the last decade. Many firms try to reach wider consumer markets by adding the Internet channel to the existing traditional channels. Despite the various benefits of the Internet channel, a significant number of firms failed in managing the new type of channel. Previous studies could not cleary explain these conflicting results associated with the Internet channel. One of the major reasons is most of the previous studies conducted analyses under a specific market condition and claimed that as the impact of Internet channel introduction. Therefore, their results are strongly influenced by the specific market settings. However, firms face various market conditions in the real worlddensity and disutility of using the Internet. The purpose of this study is to investigate the impact of various market environments on a firm's optimal channel strategy by employing a flexible game theory model. We capture various market conditions with consumer density and disutility of using the Internet.

    shows the channel structures analyzed in this study. Before the Internet channel is introduced, a monopoly manufacturer sells its products through an independent physical store. From this structure, the manufacturer could introduce its own Internet channel (MI). The independent physical store could also introduce its own Internet channel and coordinate it with the existing physical store (RI). An independent Internet retailer such as Amazon could enter this market (II). In this case, two types of independent retailers compete with each other. In this model, consumers are uniformly distributed on the two dimensional space. Consumer heterogeneity is captured by a consumer's geographical location (ci) and his disutility of using the Internet channel (${\delta}_{N_i}$).
    shows various market conditions captured by the two consumer heterogeneities.
    (a) illustrates a market with symmetric consumer distributions. The model captures explicitly the asymmetric distributions of consumer disutility in a market as well. In a market like that is represented in
    (c), the average consumer disutility of using an Internet store is relatively smaller than that of using a physical store. For example, this case represents the market in which 1) the product is suitable for Internet transactions (e.g., books) or 2) the level of E-Commerce readiness is high such as in Denmark or Finland. On the other hand, the average consumer disutility when using an Internet store is relatively greater than that of using a physical store in a market like (b). Countries like Ukraine and Bulgaria, or the market for "experience goods" such as shoes, could be examples of this market condition. summarizes the various scenarios of consumer distributions analyzed in this study. The range for disutility of using the Internet (${\delta}_{N_i}$) is held constant, while the range of consumer distribution (${\chi}_i$) varies from -25 to 25, from -50 to 50, from -100 to 100, from -150 to 150, and from -200 to 200.
    summarizes the analysis results. As the average travel cost in a market decreases while the average disutility of Internet use remains the same, average retail price, total quantity sold, physical store profit, monopoly manufacturer profit, and thus, total channel profit increase. On the other hand, the quantity sold through the Internet and the profit of the Internet store decrease with a decreasing average travel cost relative to the average disutility of Internet use. We find that a channel that has an advantage over the other kind of channel serves a larger portion of the market. In a market with a high average travel cost, in which the Internet store has a relative advantage over the physical store, for example, the Internet store becomes a mass-retailer serving a larger portion of the market. This result implies that the Internet becomes a more significant distribution channel in those markets characterized by greater geographical dispersion of buyers, or as consumers become more proficient in Internet usage. The results indicate that the degree of price discrimination also varies depending on the distribution of consumer disutility in a market. The manufacturer in a market in which the average travel cost is higher than the average disutility of using the Internet has a stronger incentive for price discrimination than the manufacturer in a market where the average travel cost is relatively lower. We also find that the manufacturer has a stronger incentive to maintain a high price level when the average travel cost in a market is relatively low. Additionally, the retail competition effect due to Internet channel introduction strengthens as average travel cost in a market decreases. This result indicates that a manufacturer's channel power relative to that of the independent physical retailer becomes stronger with a decreasing average travel cost. This implication is counter-intuitive, because it is widely believed that the negative impact of Internet channel introduction on a competing physical retailer is more significant in a market like Russia, where consumers are more geographically dispersed, than in a market like Hong Kong, that has a condensed geographic distribution of consumers.
    illustrates how this happens. When mangers consider the overall impact of the Internet channel, however, they should consider not only channel power, but also sales volume. When both are considered, the introduction of the Internet channel is revealed as more harmful to a physical retailer in Russia than one in Hong Kong, because the sales volume decrease for a physical store due to Internet channel competition is much greater in Russia than in Hong Kong. The results show that manufacturer is always better off with any type of Internet store introduction. The independent physical store benefits from opening its own Internet store when the average travel cost is higher relative to the disutility of using the Internet. Under an opposite market condition, however, the independent physical retailer could be worse off when it opens its own Internet outlet and coordinates both outlets (RI). This is because the low average travel cost significantly reduces the channel power of the independent physical retailer, further aggravating the already weak channel power caused by myopic inter-channel price coordination. The results implies that channel members and policy makers should explicitly consider the factors determining the relative distributions of both kinds of consumer disutility, when they make a channel decision involving an Internet channel. These factors include the suitability of a product for Internet shopping, the level of E-Commerce readiness of a market, and the degree of geographic dispersion of consumers in a market. Despite the academic contributions and managerial implications, this study is limited in the following ways. First, a series of numerical analyses were conducted to derive equilibrium solutions due to the complex forms of demand functions. In the process, we set up V=100, ${\lambda}$=1, and ${\beta}$=0.01. Future research may change this parameter value set to check the generalizability of this study. Second, the five different scenarios for market conditions were analyzed. Future research could try different sets of parameter ranges. Finally, the model setting allows only one monopoly manufacturer in the market. Accommodating competing multiple manufacturers (brands) would generate more realistic results.

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  • Analysis of users' needs for developing mobile health based prevention and intervention programs for the metabolic syndrome in college students (대학생의 모바일 헬스 기반 대사증후군 예방 및 중재 프로그램 개발을 위한 사용자 요구 분석)

    • Kang, MinAh;Lee, Soo-Kyoung
      • Asia-pacific Journal of Multimedia Services Convergent with Art, Humanities, and Sociology
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      • v.7 no.9
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      • pp.429-442
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      • 2017
    • This study was performed to investigate and analyze users' needs for m-health based prevention and intervention programs that are intended to improve the awareness of metabolic syndrome and promote health behaviors of college students. A questionnaire survey was conducted to 200 college students of 2 university in D city. Data were analyzed using descriptive statistics, t-tests, chi-square test with the SPSS Version 20.0. The result showed that users wanted customization of prescriptions and accurate measurement of health applications, and provided a positive feedback on information exchange between those who manage their health. The most preferred content was proper exercise methods, and the preferred gamification factors were goal-setting, compensation, and competition. The optimal price for wearable devices was between 10,000 to 50,000 won, and calorie consumption function was also preferred. Although users with experiences of wearable devices and health apps had a higher knowledge score pertaining to metabolic syndrome, there was no significant difference in the overall score. Concerning the health behaviors associated with lifestyles, individuals without the experiences of wearable devices and health apps showed a remarkably lower score. The research has a significance that it investigated and analyzed the contents needed for the development of effective moblie health based prevention and intervention programs targeting the population in their early adulthood. Therefore, based on the findings, we propose a rich and concrete follow-up study on the needs and characteristics of different user types by collecting a population with experiences of wearable devices, and a development of differentiated mobile health based prevention and intervention programs.

    Optimization of Support Vector Machines for Financial Forecasting (재무예측을 위한 Support Vector Machine의 최적화)

    • Kim, Kyoung-Jae;Ahn, Hyun-Chul
      • Journal of Intelligence and Information Systems
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      • v.17 no.4
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      • pp.241-254
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      • 2011
    • Financial time-series forecasting is one of the most important issues because it is essential for the risk management of financial institutions. Therefore, researchers have tried to forecast financial time-series using various data mining techniques such as regression, artificial neural networks, decision trees, k-nearest neighbor etc. Recently, support vector machines (SVMs) are popularly applied to this research area because they have advantages that they don't require huge training data and have low possibility of overfitting. However, a user must determine several design factors by heuristics in order to use SVM. For example, the selection of appropriate kernel function and its parameters and proper feature subset selection are major design factors of SVM. Other than these factors, the proper selection of instance subset may also improve the forecasting performance of SVM by eliminating irrelevant and distorting training instances. Nonetheless, there have been few studies that have applied instance selection to SVM, especially in the domain of stock market prediction. Instance selection tries to choose proper instance subsets from original training data. It may be considered as a method of knowledge refinement and it maintains the instance-base. This study proposes the novel instance selection algorithm for SVMs. The proposed technique in this study uses genetic algorithm (GA) to optimize instance selection process with parameter optimization simultaneously. We call the model as ISVM (SVM with Instance selection) in this study. Experiments on stock market data are implemented using ISVM. In this study, the GA searches for optimal or near-optimal values of kernel parameters and relevant instances for SVMs. This study needs two sets of parameters in chromosomes in GA setting : The codes for kernel parameters and for instance selection. For the controlling parameters of the GA search, the population size is set at 50 organisms and the value of the crossover rate is set at 0.7 while the mutation rate is 0.1. As the stopping condition, 50 generations are permitted. The application data used in this study consists of technical indicators and the direction of change in the daily Korea stock price index (KOSPI). The total number of samples is 2218 trading days. We separate the whole data into three subsets as training, test, hold-out data set. The number of data in each subset is 1056, 581, 581 respectively. This study compares ISVM to several comparative models including logistic regression (logit), backpropagation neural networks (ANN), nearest neighbor (1-NN), conventional SVM (SVM) and SVM with the optimized parameters (PSVM). In especial, PSVM uses optimized kernel parameters by the genetic algorithm. The experimental results show that ISVM outperforms 1-NN by 15.32%, ANN by 6.89%, Logit and SVM by 5.34%, and PSVM by 4.82% for the holdout data. For ISVM, only 556 data from 1056 original training data are used to produce the result. In addition, the two-sample test for proportions is used to examine whether ISVM significantly outperforms other comparative models. The results indicate that ISVM outperforms ANN and 1-NN at the 1% statistical significance level. In addition, ISVM performs better than Logit, SVM and PSVM at the 5% statistical significance level.


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