• Asia Marketing Journal
• /
• v.19 no.4
• /
• pp.37-59
• /
• 2018

This study investigates the effects of the distribution channel structure on quality decisions under duopoly competition. I considers a set-up in which two retailers compete on product quality and retail price. In the set-up, the integrated retailer has the power to determine the quality of its exclusive product, while the decentralized retailer does not. For the decentralized retailer, the supplier determines product quality. I find that asymmetric pairs of a decentralized channel by one retailer and an integrated channel by the other retailer can be a Nash equilibrium in a simultaneous-channel-choice model. The two retailers select different levels of quality, and this quality competition benefits retailers by softening price competition. In a sequential-channel-choice model, I find that the leader can obtain a first-mover advantage. From the perspective of the supplier, which can decide the distribution channel structure and level of quality, both suppliers choose the decentralized channel in equilibrium.

• Environmental and Resource Economics Review
• /
• v.15 no.5
• /
• pp.961-974
• /
• 2006

This paper estimates output and price elasticities of the industrial water in order to provide the government with tools that help make educated decisions with regard with the water provision policies rendering the latter more efficient. The estimated output elasticity produces useful insights on the role of industrial water as an input into the production process while the estimate of price elasticity enablesus to forecast the effects of various water pricing policies. This paper employs the marginal productivity method in order to estimate the abovementioned elasticities. The magnitude of the estimated output elasticity imply that the value of industrial water is much higher than its average price while the price elasticity estimate suggests that the water pricing policy can be an effective tool of controlling the demand for industrial water.

• Journal of Distribution Science
• /
• v.18 no.1
• /
• pp.95-105
• /
• 2020

Purpose: Will more expensive gifts be more pleasurable and appreciated? This is a general expectation of gift-givers. According to the previous study on Americans (Flynn and Adams 2009), recipients tend to appreciate gifts regardless of their price. It indicates that there is an interaction effect between position (giving / receiving) and gift price. This study expands the previous study and aims to answer the following two questions: "Are such an interaction effect observed in Korean, too?" and "What types of people prefer expensive gifts?" Research design, data, and methodology: Study 1 of the current research repeated the Study 3 of Flynn and Adams (2009), with an iPod (high-priced gift condition) and a music CD (low-priced gift condition). That is, a 2 (gift price: high / low) x 2 (position: giver / receiver) between-group design was used. Study 2 used gift certificates of 100,000 won (high-priced gift condition) and 5,000-won gift (low-priced gift condition). Unlike the previous study that measured only one dependent variable (gratitude), this study added five more dependent variables in an attempt to exclude alternative explanations, such as endowment effects or emotional conflicts. This study also measured individualism / collectivism, face sensitivity, and materialism to explore the types of people who prefer expensive gifts. Results: The interaction effect between gift price and position on the level of appreciation was not significant. Meanwhile the main effect of gift price and of position were significant. The gift-recipient was more appreciative than the gift-givers' expectation regardless of the price of gifts. To investigate individual differences, individualism/collectivism, face sensitivity, and materialism were examined, but none of these variables were significantly related to the preference for expensive gifts. Respondents who received gift certificates in Study 2 were less grateful than those who received iPods or music CDs in Study 1. Conclusions: This study found that Koreans tend to be more grateful if they receive expensive gifts, in contrast to the Flynn and Adams (2009)'s study with Americans. In addition, gift-recipients appreciated more than givers' expectation and were more grateful when they received tangible products rather than gift certificates.

• Environmental and Resource Economics Review
• /
• v.23 no.1
• /
• pp.43-65
• /
• 2014

In this paper, we test for allocative efficiency of productive inputs including electricity and measure the divergence between the actual and optimal level of electricity for the chemical products, which is a relatively highly electricity-intensive sector in Korean manufacturing industries, by estimating a shadow cost function. Supposing cost minimization subject to market prices was achieved, we derive the price elasticities of demand for each input and simulate the impact of a 10% increase in power rate on its demand and supply price by estimating jointly a cost function with an inverse supply relation. The null hypothesis of allocative efficiency of inputs is rejected over the period 1982-2006. On average, electricity is used more than optimal level by 98% per year. The demand for electricity decreases by 11.4%, and supply price, on average, falls by 0.08%, other things being equal.

• International Area Studies Review
• /
• v.14 no.1
• /
• pp.77-97
• /
• 2010

Recently, countries on the Caspian Sea were had heavily interested due to instability of international resource market. These countries having been developed basing on energy exports, especially Kazakhstan have drastically grown during a decades. However economy, heavily relied on the exports of energy, is influenced on fluctuation in the international energy price as well as sometimes exposed at Dutch disease. These days, Kazakhstan, increased trade and investment with Korea, has been on the rise as new supplier for energy. Therefore, economic change in Kazakhstan can be an important issue. In this paper, we analyze relations among oil price, interest rate, and real exchange rate during sample period from January 1999 to December 2008 expanding Balasa-Samuelson model. Empirical results present that oil price, interest rate, and real exchange rate mutually keep their balance. Eventually, we find out Kazakhstan has exposed at Dutch disease since oil price and interest rate have negative impacts on real exchange rate respectively.

• The Journal of the Korea Contents Association
• /
• v.21 no.6
• /
• pp.561-571
• /
• 2021

As the game industry grows, the companies are promoting price discounts to increase game sales and profits. Consumers generally feel guilt when they are purchasing games. Previous studies argue that consumers feel less guilty and justify their consumption more easily when they are purchasing hedonic products at discounted price. In this study, we argue that there are different types of games; multi-game where consumers socialize each other and single games not supporting socializing. In the multi-game, consumers make social relationship which can provide substantial benefits. Since multi-games are promoting consumers' socializing expected to have those benefits. Although most of game consumptions bring a sense of guilty feeling, purchasing multi-game may not cause guilt much because the benefits of socializing justify the consumption. To support my hypothesis, we collect the data from global game platform Steam to analyze the relationship between price promotion and number of consumers. As a result, price promotion has significantly different relationship between multi-and single game. The results of this study suggest several managerial implications.

• Environmental and Resource Economics Review
• /
• v.31 no.2
• /
• pp.141-163
• /
• 2022

This paper empirically analyzes the effect of renewable electricity generation on the System Marginal Price (SMP) in Korea. Using an ARX-GARCHX model with hourly data from 2016 to 2020, we evaluate SMP determinants and merit order effects. As a result, we find that solar and wind power, as well as gas price and total load, play a critical role in the SMP. In particular, solar power reduces the SMP level but raises volatility during peak and off-peak periods. This result implies that SMP may fall as renewable electricity generation increases, leading to a decrease in the profitability of existing power plants and investment in renewables. On the other hand, even if the subsidy of renewable energy increases the burden on the SMP, it can be offset by the merit order effect, which lowers the SMP.

• The Journal of Asian Finance, Economics and Business
• /
• v.6 no.3
• /
• pp.19-26
• /
• 2019

The paper aims to measure stock price volatility on Ho Chi Minh stock exchange (HSX). We apply symmetric models (GARCH, GARCH-M) and asymmetry (EGARCH and TGARCH) to measure stock price volatility on HSX. We used time series data including the daily closed price of VN-Index during 1/03/2001-1/03/2019 with 4375 observations. The results show that GARCH (1,1) and EGARCH (1,1) models are the most suitable models to measure both symmetry and asymmetry volatility level of VN-Index. The study also provides evidence for the existence of asymmetric effects (leverage) through the parameters of TGARCH model (1,1), showing that positive shocks have a significant effect on the conditional variance (volatility). This result implies that the volatility of stock returns has a big impact on future market movements under the impact of shocks, while asymmetric volatility increase market risk, thus increase the attractiveness of the stock market. The research results are useful reference information to help investors in forecasting the expected profit rate of the HSX, and also the risks along with market fluctuations in order to take appropriate adjust to the portfolios. From this study's results, we can see risk prediction models such as GARCH can be better used in risk forecasting especially.

• Spatial Information Research
• /
• v.11 no.3
• /
• pp.301-325
• /
• 2003

Urban residential area, one of the main subjects of urban and architectural studies, can be analyzed accurately and rapidly with CIS. (Geographic Information System) And the applications of GIS in urban studies are too macro to be explained in architectural terms and the ones in architectural studies are not so much active rather be used as a secondary means. So the studies in urban-architectural scale are very useful in many ways. This study explores urban-architectural possibilities of analytic capabilities of GIS through the analysis of spatial characteristics of residential area in terms of land price according to parcel attributes. It is found, firstly, that the parcel attributes have relations with land price and its distribution patterns. Secondly, it is verified that the visualization capability of GIS can be a very useful method of analysis through user-interface effects in urban-architectural scaled analysis.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.31 no.9_10
• /
• pp.1321-1332
• /
• 2007

The purposes of this research were to investigate the influences of shopping value, brand awareness, and the types of sales promotion on the purchase of bundled cosmetics. In experiment, 1) shopping value 2) brand awareness 3) types of sales promotion were manipulated as independent variables, and consumer preference and purchasing intention of bundle of cosmetics were measured as dependent variables. This research was an experimental design which was $2{\times}2{\times}2$ mixed factorial design. For the data analysis, factor analysis, cluster analysis, three-way ANOVA were used by utilizing SAS program. The main results of the study were summarized as follows: First, the results indicated that the consumer of hedonic shopping value have a positive effect on preferring price-cut sales, especially if brand awareness is high. Second, the consumer of utilitarian shopping value preferred price-cut sales to special offer, irrespective of brand awareness. This result indicates that consumers who gets more involved in and enjoys shopping are likely to have more brand awareness than others. This. seems to be the important characteristics of shopping. Consumer who have utilitarian shopping value concerned in price. The result showed the 3-way interaction effects on the consumer preference of bundle of cosmetics.