• Title/Summary/Keyword: potential theory method

Search Result 579, Processing Time 0.032 seconds

Effect of Viscosity and Clogging on Grout Penetration Characteristics (점도 변화와 폐색 현상을 고려한 그라우트재의 침투 특성)

  • Kim, Jong-Sun;Choi, Yong-Ki;Park, Jong-Ho;Woo, Sang-Baik;Lee, In-Mo
    • Journal of the Korean Geotechnical Society
    • /
    • v.23 no.4
    • /
    • pp.5-13
    • /
    • 2007
  • Many construction projects adopt grouting technology to prevent the leakage of groundwater or to improve the shear strength of the ground. Recognition as a feasible field procedure dates back to 1925. Since then, developments and field use have increased rapidly. According to improvement of grout materials, theoretical study on grout penetration characteristics is demanded. Fluid of grout always tends to flow from higher hydraulic potential to lower one and the motion of grout is also a function of formation permeability. Viscosity of pout is changed by chemical action while grout moves through pores. Due to the increment of viscosity, permeability is decreased. Permeability is also reduced by grout particle deposits to the soil aggregates. In this paper, characteristics of new cement grout material that has been developed recently are studied: injectable volume of new grout material is tested in two different grain sizes of sands; and the method to calculate injectable volume of grout Is suggested with consideration of change in viscosity and clogging phenomena. The calculated values are compared with injection test results. Viscosity of new grout material is found to increase as an exponential function of time. And lumped parameter $\delta$ of new grout material to be used for assessing deposition characteristics is estimated by comparing deposit theory with injection test results considering different soil types and different injection pressures. Injection test results show that grout penetration rate is decreased by the increase of grout viscosity and clogging phenomena.

Cooperative Sales Promotion in Manufacturer-Retailer Channel under Unplanned Buying Potential (비계획구매를 고려한 제조업체와 유통업체의 판매촉진 비용 분담)

  • Kim, Hyun Sik
    • Journal of Distribution Research
    • /
    • v.17 no.4
    • /
    • pp.29-53
    • /
    • 2012
  • As so many marketers get to use diverse sales promotion methods, manufacturer and retailer in a channel often use them too. In this context, diverse issues on sales promotion management arise. One of them is the issue of unplanned buying. Consumers' unplanned buying is clearly better off for the retailer but not for manufacturer. This asymmetric influence of unplanned buying should be dealt with prudently because of its possibility of provocation of channel conflict. However, there have been scarce studies on the sales promotion management strategy considering the unplanned buying and its asymmetric effect on retailer and manufacturer. In this paper, we try to find a better way for a manufacturer in a channel to promote performance through the retailer's sales promotion efforts when there is potential of unplanned buying effect. We investigate via game-theoretic modeling what is the optimal cost sharing level between the manufacturer and retailer when there is unplanned buying effect. We investigated following issues about the topic as follows: (1) What structure of cost sharing mechanism should the manufacturer and retailer in a channel choose when unplanned buying effect is strong (or weak)? (2) How much payoff could the manufacturer and retailer in a channel get when unplanned buying effect is strong (or weak)? We focus on the impact of unplanned buying effect on the optimal cost sharing mechanism for sales promotions between a manufacturer and a retailer in a same channel. So we consider two players in the game, a manufacturer and a retailer who are interacting in a same distribution channel. The model is of complete information game type. In the model, the manufacturer is the Stackelberg leader and the retailer is the follower. Variables in the model are as following table. Manufacturer's objective function in the basic game is as follows: ${\Pi}={\Pi}_1+{\Pi}_2$, where, ${\Pi}_1=w_1(1+L-p_1)-{\psi}^2$, ${\Pi}_2=w_2(1-{\epsilon}L-p_2)$. And retailer's is as follows: ${\pi}={\pi}_1+{\pi}_2$, where, ${\pi}_1=(p_1-w_1)(1+L-p_1)-L(L-{\psi})+p_u(b+L-p_u)$, ${\pi}_2=(p_2-w_2)(1-{\epsilon}L-p_2)$. The model is of four stages in two periods. Stages of the game are as follows. (Stage 1) Manufacturer sets wholesale price of the first period($w_1$) and cost sharing level of channel sales promotion(${\Psi}$). (Stage 2) Retailer sets retail price of the focal brand($p_1$), the unplanned buying item($p_u$), and sales promotion level(L). (Stage 3) Manufacturer sets wholesale price of the second period($w_2$). (Stage 4) Retailer sets retail price of the second period($p_2$). Since the model is a kind of dynamic games, we try to find a subgame perfect equilibrium to derive some theoretical and managerial implications. In order to obtain the subgame perfect equilibrium, we use the backward induction method. In using backward induction approach, we solve the problems backward from stage 4 to stage 1. By completely knowing follower's optimal reaction to the leader's potential actions, we can fold the game tree backward. Equilibrium of each variable in the basic game is as following table. We conducted more analysis of additional game about diverse cost level of manufacturer. Manufacturer's objective function in the additional game is same with that of the basic game as follows: ${\Pi}={\Pi}_1+{\Pi}_2$, where, ${\Pi}_1=w_1(1+L-p_1)-{\psi}^2$, ${\Pi}_2=w_2(1-{\epsilon}L-p_2)$. But retailer's objective function is different from that of the basic game as follows: ${\pi}={\pi}_1+{\pi}_2$, where, ${\pi}_1=(p_1-w_1)(1+L-p_1)-L(L-{\psi})+(p_u-c)(b+L-p_u)$, ${\pi}_2=(p_2-w_2)(1-{\epsilon}L-p_2)$. Equilibrium of each variable in this additional game is as following table. Major findings of the current study are as follows: (1) As the unplanned buying effect gets stronger, manufacturer and retailer had better increase the cost for sales promotion. (2) As the unplanned buying effect gets stronger, manufacturer had better decrease the cost sharing portion of total cost for sales promotion. (3) Manufacturer's profit is increasing function of the unplanned buying effect. (4) All results of (1),(2),(3) are alleviated by the increase of retailer's procurement cost to acquire unplanned buying items. The authors discuss the implications of those results for the marketers in manufacturers or retailers. The current study firstly suggests some managerial implications for the manufacturer how to share the sales promotion cost with the retailer in a channel to the high or low level of the consumers' unplanned buying potential.

  • PDF

Disaster and Artistic Measures: Hermann Josef Hack's Project of World Climate Refugee Camp (재난과 미술적 대응: 헤르만 조셉 하크(Hermann Josef Hack)의 기후난민 프로젝트)

  • Kim, Hyang-Sook
    • The Journal of Art Theory & Practice
    • /
    • no.14
    • /
    • pp.53-83
    • /
    • 2012
  • This thesis is a study of artistic measures and climate refugees, based on Hack's World Climate Refugee Camp project. According to Hack, climate refugees appeared with the process of globalization. Hack claimed that the people who put climate refugees in danger are the industrialized nations, and therefore, their rejection of refugees is nonsense. He also stated that the fundamental solution would be the active participation of such nations. Thus, he travels around the world, encouraging participants and globalizing his project. Interestingly, the practical participation method of his climate calamity project is divided into four methods, which are all related to realizing the danger and presenting various solutions. First, the aesthetic of survival: the reason Hack focused on the warming trend and claimed that we have to accept the climate refugees as refugees comes from the thought that we are all potential refugees, and the anxiety that climate refugees may cause war in the end. The solution Hack found for surviving in such a world is to create "refugee camps" to notify people about the seriousness of climate change, and to put the "aesthetic for survival" in action. Second, a relation-oriented relationship: communication between Hack and the participants was done in various ways. They are experiencing a bond and emotions of an interrelationship through their actions in the experimental field, experiencing a new form of art, which they were not able to experience in a museum. Third, a utopian measure: Hack's utopian measure started from the fear of dystopia but Hack still believes that it is not only a dream, but that it can be realized. He claims that even though the start may be feeble, it is possible to rescue children from starvation and to treat climate refugees as proper human in the end, when communication and cooperation is done the right way and properly. Fourth, the aesthetic of global relation, the internet: the new solution Hack is trying on the internet is to make more people participate in his project. It is fate that "human are the wrongdoer and the victim at the same time", but according to Hack's opinion, social disaster can be avoided through effort and it is optimistic that we can give form to the culture revolution we are experiencing now. Hack's project illustrated the importance of daily life, compared to art inside a museum, through active participation of the people and opened up a new method of art through realistic responses to disasters. This is distinctive from the past exhibitions, where artists gave shape and form to ideals and an imaginary world, in that it shows that the artist and audience aim for creating a community-like structure, just like Bourriaud's art method. Hack's project of climate calamity illustrates that installation and action art is not only an art genre which shows installation and activities, but that it can include social and political issues and that it can be completed with the help of participants, consequently becoming a genre of modern art. Hack raises a question about art's identity through various descriptions. Artists as planners, who base their artworks on their subjectivity or the characteristics of a specific period, the people as participants, the duet of art work and play, human and human, and further, human and nature. The practical participation method, as a measure for "disaster", reveals the new art of the 21st century within Hack's artworks. Even though there are several problems with Hack's usage of art as a measure for disaster, it will actively open up a new page for the 21st century's art with the theme of disaster.

  • PDF

HW/SW Partitioning Techniques for Multi-Mode Multi-Task Embedded Applications (멀티모드 멀티태스크 임베디드 어플리케이션을 위한 HW/SW 분할 기법)

  • Kim, Young-Jun;Kim, Tae-Whan
    • Journal of KIISE:Computer Systems and Theory
    • /
    • v.34 no.8
    • /
    • pp.337-347
    • /
    • 2007
  • An embedded system is called a multi-mode embedded system if it performs multiple applications by dynamically reconfiguring the system functionality. Further, the embedded system is called a multi-mode multi-task embedded system if it additionally supports multiple tasks to be executed in a mode. In this Paper, we address a HW/SW partitioning problem, that is, HW/SW partitioning of multi-mode multi-task embedded applications with timing constraints of tasks. The objective of the optimization problem is to find a minimal total system cost of allocation/mapping of processing resources to functional modules in tasks together with a schedule that satisfies the timing constraints. The key success of solving the problem is closely related to the degree of the amount of utilization of the potential parallelism among the executions of modules. However, due to an inherently excessively large search space of the parallelism, and to make the task of schedulabilty analysis easy, the prior HW/SW partitioning methods have not been able to fully exploit the potential parallel execution of modules. To overcome the limitation, we propose a set of comprehensive HW/SW partitioning techniques which solve the three subproblems of the partitioning problem simultaneously: (1) allocation of processing resources, (2) mapping the processing resources to the modules in tasks, and (3) determining an execution schedule of modules. Specifically, based on a precise measurement on the parallel execution and schedulability of modules, we develop a stepwise refinement partitioning technique for single-mode multi-task applications. The proposed techniques is then extended to solve the HW/SW partitioning problem of multi-mode multi-task applications. From experiments with a set of real-life applications, it is shown that the proposed techniques are able to reduce the implementation cost by 19.0% and 17.0% for single- and multi-mode multi-task applications over that by the conventional method, respectively.

Core-hole Effect on Partial Electronic Density of State and O K-edge x-ray Raman Scattering Spectra of High-Pressure SiO2 Phases (전자-정공 효과(Core-Hole Effect) 적용에 따른 SiO2 고압상들의 전자구조 및 O K-edge X-선 Raman 산란 스펙트럼 계산 결과 분석)

  • Khim, Hoon;Yi, Yoo Soo;Lee, Sung Keun
    • Journal of the Mineralogical Society of Korea
    • /
    • v.30 no.2
    • /
    • pp.59-70
    • /
    • 2017
  • $SiO_2$ is one of the most abundant constituents of the Earth's crust and mantle. Probing its electronic structures at high pressures is essential to understand their elastic and thermodynamic properties in the Earth's interior. The in situ high-pressure x-ray Raman scattering (XRS) experiment has been effective in providing detailed bonding transitions of the low-z materials under extreme compression. However, the relationship between the local atomic structures and XRS features at high pressure has not been fully established. The ab initio calculations have been used to overcome such experimental difficulties. Here we report the partial density of states (PDOS) of O atoms and the O K-edge XRS spectra of ${\alpha}-quartz$, ${\alpha}-cristobalite$, and $CaCl_2$-type $SiO_2$ phases calculated using ab initio calculations based on the full-potential linearized augmented plane wave (FP-LAPW) method. The unoccupied O PDOSs of the $CaCl_2$-type $SiO_2$ calculated with and without applying the core-hole effects present significantly distinctive features. The unoccupied O p states of the ${\alpha}-quartz$, ${\alpha}-cristobalite$ and $CaCl_2$-type $SiO_2$ calculated with considering the core-hole effect present similar features to their calculated O K-edge XRS spectra. This confirms that characteristic features in the O K-edge XRS stem from the electronic transition from 1s to unoccupied 2p states. The current results indicate that the core-hole effects should be taken in to consideration to calculate the precise O K-edge XRS features of the $SiO_2$ polymorphs at high pressure. Furthermore, we also calculated O K-edge XRS spectrum for $CaCl_2$-type $SiO_2$ at ~63 GPa. As the experimental spectra for these high pressure phases are not currently available, the current results for the $CaCl_2$-type $SiO_2$ provide useful prospect to predict in situ high-pressure XRS spectra.

Strategic Direction and Road Map of Expanding Prevention of Winter Disease in the Summer (동병하치 확산을 위한 전략적 방향과 이행방안)

  • Song, Ho-Sueb
    • Journal of Acupuncture Research
    • /
    • v.27 no.3
    • /
    • pp.147-157
    • /
    • 2010
  • Objectives : The purpose of this study was to propose appropriate strategic directions and road maps for successful achievement of programs preventing winter disease in the summer. Methods : Details on programs preventing winter disease in the summer such as clear concept, theoretical basis, current status, intervention or available prescriptions and indication/contraindication/caution were prepared through the related journal review, upon which an observational study was devised and done for simulation to find out even a trivial problem and to guarantee the safety beforehand. The experimental group was divided into 5 groups by the size of pill and the way ginger is treated; 1cm pill with ginger group, 3cm pill group without ginger, 3cm pill group dipped into ginger, 3cm pill group applying ginger to acupoints and 3cm pill group with ginger Results 1. program preventing winter disease in the summer was defined as representative winter diseases such as common cold, influenza, chronic asthma, chronic bronchitis, allergic rhinitis, emphysema, chronic gastritis and rheumatoid arthritis, and preventive care in the summer, reinforcing deficient yang qi of five viscera by using exuberant yang qi from summer heat. 2. It was based upon historically established theories which is 'nourishing yang qi in the spring and summer', 'long summer, namely rainy spell in the summer overwhelms the winter, because of earth winning water according to the five phases theory' and 'To replenish yang qi is major principle to treat winter diseases, which can be most appropriately and timely applied to the patient with deficient yang qi of five viscera inherently, especially in the three dog days of the summer, because of exuberant exterior yang qi and deficient interior yang qi in the five viscera'. 3. In the adjacent China and Taiwan, acupoint applying method in the three dog days named 'San Fu Tie' have been stirring a boom throughout the nation, in which Xiaochuan Gao was used as a basic prescription and it mainly was applied at bilateral $BL_{13}$, $_{15}$ and $_{17}$ for about 4 hours. As far as domestic current status, the necessity of adopting the above method prior to Herbal formula was also recognised, because not a few koreans have apprehension for the safety of it including medicinal herbs and are reluctant to take it any more due to negative advertisement of narrow minded doctors' association. 4. Indication of acupoint applying method in the three dog days included most of winter diseases such as common cold, influenza, chronic asthma, chronic bronchitis, allergic rhinitis, emphysema, chronic gastritis. contraindication was pregnant woman and the weak such as infants and the old. More attention was paid to grasp firmly the normal reaction following the treatment for preventing side effect and teasing blister. recommendation was also given to abstain from food inducing phlegm and dampness such as meat, shrimp and crab as well as cold drinks and foods 5. In the simulation observational study based upon the above findings following review the related articles, no blister was shown on the acupoints icluding bilateral $BL_{13}$, $_{15}$ and $_{17}$ in every experimental group during 24hr observation following the acupoint applying treatment with pills made by modified and devised prescription. At 4 hr, the effectiveness of it reached a peak showing redness and mild tenderness and there is little difference between groups 3cm pills groups regardless of the way ginger was treated. abdominal distention and growling was found in all the volunteers during the treatment at CV 8. Strategic directions and road maps : Through successful fulfillment of the program preventing winter disease in the summer, Korean traditional medicine should be integrated into mainstream national health care services. Cultural access was thought to be as important as Scientific EBM approach. First of all, To evoke potential cultural homogeneity from campaigns and press advertisement was needed for promoting public awareness about preventing winter disease in the summer by enhancing immunity via acupoint applying treatment in the three dog days, and then indigenous name as Sambokcheop, protocol, Clinical Research Form for data collection of it should be developed and prepared. Once the first step was taken this summer, through a thorough data collection and scrutinized scientific evaluation, drawbacks should be compensted for and the efficacy and safety should be substantiated.

Media Habits of Sensation Seekers (감지추구자적매체습관(感知追求者的媒体习惯))

  • Blakeney, Alisha;Findley, Casey;Self, Donald R.;Ingram, Rhea;Garrett, Tony
    • Journal of Global Scholars of Marketing Science
    • /
    • v.20 no.2
    • /
    • pp.179-187
    • /
    • 2010
  • Understanding consumers' preferences and use of media types is imperative for marketing and advertising managers, especially in today's fragmented market. A clear understanding assists managers in making more effective selections of appropriate media outlets, yet individuals' choices of type and use of media are based on a variety of characteristics. This paper examines one personality trait, sensation seeking, which has not appeared in the literature examining "new" media preferences and use. Sensation seeking is a personality trait defined as "the need for varied, novel, and complex sensations and experiences and the willingness to take physical and social risks for the sake of such experiences" (Zuckerman 1979). Six hypotheses were developed from a review of the literature. Particular attention was given to the Uses and Gratification theory (Katz 1959), which explains various reasons why people choose media types and their motivations for using the different types of media. Current theory suggests that High Sensation Seekers (HSS), due to their needs for novelty, arousal and unconventional content and imagery, would exhibit higher frequency of use of new media. Specifically, we hypothesize that HSS will use the internet more than broadcast (H1a) or print media (H1b) and more than low (LSS) (H2a) or medium sensation seekers (MSS) (H2b). In addition, HSS have been found to be more social and have higher numbers of friends therefore are expected to use social networking websites such as Facebook/MySpace (H3) and chat rooms (H4) more than LSS (a) and MSS (b). Sensation seekers can manifest into a range of behaviors including disinhibition,. It is expected that alternative social networks such as Facebook/MySpace (H5) and chat rooms (H6) will be used more often for those who have higher levels of disinhibition than low (a) or medium (b) levels. Data were collected using an online survey of participants in extreme sports. In order to reach this group, an improved version of a snowball sampling technique, chain-referral method, was used to select respondents for this study. This method was chosen as it is regarded as being effective to reach otherwise hidden population groups (Heckathorn, 1997). A final usable sample of 1108 respondents, which was mainly young (56.36% under 34), male (86.1%) and middle class (58.7% with household incomes over USD 50,000) was consistent with previous studies on sensation seeking. Sensation seeking was captured using an existing measure, the Brief Sensation Seeking Scale (Hoyle et al., 2002). Media usage was captured by measuring the self reported usage of various media types. Results did not support H1a and b. HSS did not show higher levels of usage of alternative media such as the internet showing in fact lower mean levels of usage than all the other types of media. The highest media type used by HSS was print media, suggesting that there is a revolt against the mainstream. Results support H2a and b that HSS are more frequent users of the internet than LSS or MSS. Further analysis revealed that there are significant differences in the use of print media between HSS and LSS, suggesting that HSS may seek out more specialized print publications in their respective extreme sport activity. Hypothesis 3a and b showed that HSS use Facebook/MySpace more frequently than either LSS or MSS. There were no significant differences in the use of chat rooms between LSS and HSS, so as a consequence no support for H4a, although significant for MSS H4b. Respondents with varying levels of disinhibition were expected to have different levels of use of Facebook/MySpace and chat-rooms. There was support for the higher levels of use of Facebook/MySpace for those with high levels of disinhibition than low or medium levels, supporting H5a and b. Similarly there was support for H6b, Those with high levels of disinhibition use chat-rooms significantly more than those with medium levels but not for low levels (H6a). The findings are counterintuitive and give some interesting insights for managers. First, although HSS use online media more frequently than LSS or MSS, this groups use of online media is less than either print or broadcast media. The advertising executive should not place too much emphasis on online media for this important market segment. Second, social media, such as facebook/Myspace and chatrooms should be examined by managers as potential ways to reach this group. Finally, there is some implication for public policy by the higher levels of use of social media by those who are disinhibited. These individuals are more inclined to engage in more socially risky behavior which may have some dire implications, e.g. by internet predators or future employers. There is a limitation in the study in that only those who engage in extreme sports are included. This is by nature a HSS activity. A broader population is therefore needed to test if these results hold.

Effect of Music activitics using audition on Music Aptitude development for Kindergarten Children (오디에이션 음악활동이 유치원 아동의 음악소질 향상에 미치는 영향)

  • Rho, Joohee
    • Journal of Music and Human Behavior
    • /
    • v.1 no.1
    • /
    • pp.11-32
    • /
    • 2004
  • According to Edwin Gordon(1987, 1997, 2003), music aptitude is a product of interaction of innate potential and early environmental experiences. He referred to music aptitude of children up to nine years of age as developmental music aptitude which fluctuates due to musical environment. Music aptitude stabilizes at age nine, and the music aptitude after age nine is called "stabilized music aptitude". This research is to examine Gorden's hypothesis that the younger a child receives music education, the higher music aptitude. Also, this research is to experiment the effect of Audiation activities developed in Audie Music Curriculum on music aptitude. The researcher and another Audie teacher as a co-teacher guided children together for 30 minutes once a week. The pedagogy guidelines for informal guidance in music learning theory were kept throughout the classes. Also, Audie's teaching method which had been developed for Korean Kindergarten educational environment was also applied. Five-year-old subjects in Experimental group 1 experienced the Audie Music Curriculum of one year; five-year-old subjects in Experimental group 2 experienced it for two years. Primary Measures of Music Audiation was administered three times during their last year of Kindergarten. Subjects in the Control groups, one examined at the beginning and the other at the end of their last year in Kindergarten, received no Audie instruction. There was no significant difference in tonal aptitude, but there was significant difference in rhythmic aptitude(p< .05) among the experiemental groups. Because both Experimental groups showed statistical significance (p< .001) in the music aptitude increase during their academic years, the significant differences of the year-end music aptitude between control group and experimental groups were the expected result.

  • PDF

Underpricing of Initial Offerings and the Efficiency of Investments (신주(新株)의 저가상장현상(低價上場現象)과 투자(投資)의 효율성(效率成)에 대한 연구(硏究))

  • Nam, Il-chong
    • KDI Journal of Economic Policy
    • /
    • v.12 no.2
    • /
    • pp.95-120
    • /
    • 1990
  • The underpricing of new shares of a firm that are offered to the public for the first time (initial offerings) is well known and has puzzled financial economists for a long time since it seems at odds with the optimal behavior of the owners of issuing firms. Past attempts by financial economists to explain this phenomenon have not been successful in the sense that the explanations given by them are either inconsistent with the equilibrium theory or implausible. Approaches by such authors as Welch or Allen and Faulhaber are no exceptions. In this paper, we develop a signalling model of capital investment to explain the underpricing phenomenon and also analyze the efficiency of investment. The model focuses on the information asymmetry between the owners of issuing firms and general investors. We consider a firm that has been owned and operated by a single owner and that has a profitable project but has no capital to develop it. The profit from the project depends on the capital invested in the project as well as a profitability parameter. The model also assumes that the financial market is represented by a single investor who maximizes the expected wealth. The owner has superior information as to the value of the firm to investors in the sense that it knows the true value of the parameter while investors have only a probability distribution about the parameter. The owner offers the representative investor a fraction of the ownership of the firm in return for a certain amount of investment in the firm. This offer condition is equivalent to the usual offer condition consisting of the number of issues to sell and the unit price of a share. Thus, the model is a signalling game. Using Kreps' criterion as the solution concept, we obtained an essentially unique separating equilibrium offer condition. Analysis of this separating equilibrium shows that the owner of the firm with high profitability chooses an offer condition that raises an amount of capital that is short of the amount that maximizes the potential profit from the project. It also reveals that the fraction of the ownership of the firm that the representative investor receives from the owner of the highly profitable firm in return for its investment has a value that exceeds the investment. In other words, the initial offering in the model is underpriced when the profitability of the firm is high. The source of underpricing and underinvestment is the signalling activity by the owner of the highly profitable firm who attempts to convince investors that his firm has a highly profitable project by choosing an offer condition that cannot be imitated by the owner of a firm with low profitability. Thus, we obtained two main results. First, underpricing is a result of a signalling activity by the owner of a firm with high profitability when there exists information asymmetry between the owner of the issuing firm and investors. Second, such information asymmetry also leads to underinvestment in a highly profitable project. Those results clearly show the underpricing entails underinvestment and that information asymmetry leads to a social cost as well as a private cost. The above results are quite general in the sense that they are based upon a neoclassical profit function and full rationality of economic agents. We believe that the results of this paper can be used as a basis for further research on the capital investment process. For instance, one can view the results of this paper as a subgame equilibrium in a larger game in which a firm chooses among diverse ways to raise capital. In addition, the method used in this paper can be used in analyzing a wide range of problems arising from information asymmetry that the Korean financial market faces.

  • PDF