• Title/Summary/Keyword: scale economies

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The Efficiency of Networks and Competitive Strategies (네트워크의 효율성과 경쟁 전략에 관한 연구)

  • 김우봉
    • Journal of Information Technology Applications and Management
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    • v.9 no.3
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    • pp.97-111
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    • 2002
  • This paper attempts to provide an overview of relationship between the characteristics of the network and competitive strategies. We review the theoretical background of the efficiency of network, which Is very important for the network-based industries. Network externality, positive feedback effects, bandwagon effects, economies of scale, economies of scope in network-base businesses are reviewed. Various network situations, including interconnection, and strategies are also discussed. In this purpose, simple but meaningful examples and cases are used to show the economic goals and means of network competition strategies. We try to link network strategies to the generic strategies and coopetition suggested by Porter and by Brandenburger and Nalebuff respectively. Since this study is an exploratory research, further studies on more complex network situation in the real work can be executed with taking advantage of this effort.

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A Study on the New Impedance Matching method by using Non-Symmetrical coupled Lines for MIC and MMIC (MIC와 MMIC를 위한 비대칭 결합 선로에 의한 새로운 임피던스 정합 방법에 관한 연구)

  • 강희창;진연강
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.13 no.6
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    • pp.521-528
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    • 1988
  • Into the telecommunications industry, which had been monopolistic, a few advanced countries introduced competition through 70's and 80's. And this trend is going on worldwide. The introduction of competition into the industry is made mainly in the long distance, international and enhanced market. This liberalisation results from the fundamental change of the cost function. Suggesting that the cost comprises of that of the facility sector and that of the operation sector there exists the economies of scale in the facility sector in general. The major ground for the monopolistic industrial structure in the past was the natural monopoly depending on the economies of scale. But the rapid advance of the technology by a large margin. This decrease has resulted in the change of the cost function. That is while there exists the economies of scale in the smaller production scale, the average cost increases beyond a certain scale. This means that the natural monopoly collapsed, and that the competitive structure is more efficient than the monopolistic structure. But, because there exists economies of scale in the smaller scale, the desirable number of players, which could result in efficient industry structure depends on the market size. Such correlation between technological level market size and the degree of regulation is found in the case of U.S.A., Japan and U.K., where deregulation policy of the telecommunications market has already been carried out. In U.S.A., which has the largest market and the highest technological level the degree of regulation is lowest. Also in the order of Japan and U.K. the regulation is severer. Japan and U.K. are likely to liberalize still more, as the technology advances and the market grows. This article is just the beginning of the research, and this hypothesis requires more detailed research.

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A goal programming/constrained regression : economics of scale for the Korean nature gas industry (제약 회귀하의 목표계획법을 이용한 국내 천연가스 산업의 규모의 경제성 분석)

  • 김봉진;윤희천;이정동;김태유
    • Korean Management Science Review
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    • v.14 no.1
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    • pp.1-10
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    • 1997
  • We consider a problem of estimating the economics of scale for the natural gas industries. The goal programming/constrained regression is employed for estimating the economics of scale for the natural gas industry, and the problem is formulated as a linear programing problem. Also the translog cost function is used to represent the cost structure for the natural gas industry. The Korean Gas Corporation was selected as a case study, and we demonstrate that the suggested goal programming/constrained regression approach is appropriate for estimating the economies of scale for the Korean nature gas industry.

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Economies of Scale in Multiproduct Firms;Evidence from Air Transport Industry (항공운송산업의 비용분석을 통한 규모의 경제성 추정;초월대수(Translog)비용함수와 푸리에(Fourier) 신축함수 비교 분석을 중심으로)

  • Kim, Je-Chul;Huh, Seok-Min;Lee, Dong-Hui;Lee, Young-Soo
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.14 no.4
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    • pp.38-47
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    • 2006
  • This study analyzes the expense structure of the air transport industry, based on the cost and income data of 18 major airlines, estimates the economic effectiveness of scale and conducts comparative analysis. As for the method of analysis, Translog cost function and the Fourier flexible function were used. The result showed that big companies had the economy of scale based on the Translog cost function, while the Fourier flexible function led to a estimation that expanding the input is not recommended, for the expansion of scale entails the poor economy of scale. It can be presumed that the economy of scale was estimated according to the U shape of the Translog cost function in the given data. On the other hand, the Fourier flexible cost function approaches the unknown function, as it is a Fourier series, and correctly infers the economy of scale based on the analyzed data. As for the flag carrier's economy of scale, it was inferred that the economy of scale existed by any of two functions. Therefore, the conclusion was that further expanding the scale will not cause any problem.

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Buyer's EOQ model for deteriorating products under conditions of permissible delay in payments and quantity discounts for freight cost

  • Shinn Seong-Whan;Song Chang-Yong
    • Proceedings of the Safety Management and Science Conference
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    • 2002.05a
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    • pp.237-241
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    • 2002
  • This paper deals with the problem of determining the buyer's economic lot sizing policy for exponentially deteriorating products under trade credit. It is also assumed that the ordering cost consists of a fixed set-up cost and a freight cost, where the freight cost has a quantity discount offered due to the economies of scale. We formulate the mathematical model and the solution algorithm is developed based on the properties of an optimal solution.

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Reliable Replenishment Policy for Deteriorating Products under Day-terms Supplier Credit and Quantity Discounts for Freight Cost in a Supply Chain (공급사슬에서 신용거래와 수송비의 할인을 고려한 퇴화성제품의 신뢰성있는 재고보충정책)

  • Shinn Seong-Whan
    • Journal of the Korea Safety Management & Science
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    • v.8 no.1
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    • pp.195-206
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    • 2006
  • 본 연구는 제조자(공급자)와 중간분배자로 구성된 공급사슬에서 시간에 따라 일정률로 퇴화하는 퇴화성 제품을 다루는 중간분배자의 신뢰성있는 재고보충정책을 분석하였다. 문제 분석을 위하여 제조자는 고객의 수요를 증대시키기 위한 수단으로 중간분배자로부터의 제품대금에 대하여 일정기간 동안 신용거래를 허용한다는 가정과 함께 수송량에 따라 할인되는 수송비를 고려하여 모형을 수립하였고, 중간분배자의 경제적 재고보충정책을 결정하기 위한 해법을 개발하였다.

A Study on the Cooperative Organization Model among Family Farms for the Value Enhancement of Crop-Livestock Cycling Organic Agriculture - Case of Crop-Livestock Cycling Organic Pig Farm - (경종-축산 순환 유기농업의 가치 증진을 위한 농가 간 협동조직화 모델 연구 - 경종-축산 순환 양돈 농가를 사례로 -)

  • Choi, Deog-Cheon
    • Korean Journal of Organic Agriculture
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    • v.28 no.3
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    • pp.367-386
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    • 2020
  • The significance of this study was to analyze the quality value of organic livestock pork for the first time based on the results of managing and testing the cycling organic farming of black pork and vegetables within farm for two years. The results of analysis could be summarized as follows. First, the pork of experimental group with crop-livestock cycling farming showed the excellent quality and high consumer preference compared to the control group of general pork or pork from non-crop-livestock cycling organic farming. In the content ratio of Omega-3 as a representative essential fatty acid, it was 1.46 that was about 2.8 times more than general pork (0.52). In case of Omega-6, it had about 2.5 times more than general pork. Especially, the U/S ratio value which was the content ratio of Unsaturated Fatty Acid (UFA, U) of Saturated Fatty Acid (SFA, S), was largely shown in pork (2.93) from cycling organic farming. Second, it would be necessary to maintain the economies of scope shown in crop-livestock cycling organic farming, and the high quality value of livestock products. For this, there should be a value chain model that could realize the economies of scope and economies of scale at the same time based on scaling and diversification through cooperative organization between farmers. Through this, it would be possible to establish a cycling model called 'community cooperative agriculture' by forming local internal markets through cooperation of production-processing and integration of distribution-sale-consumption. For the managerial activation of this cooperative organization, the government should promote/support the small crop-livestock cycling organic farming cooperative organization in local unit. For securing the reliability of crop-livestock cycling organic agricultural products and crop-livestock cycling organic livestock products, it would be necessary to review the introduction of Participatory Guarantee System (PGS).

Service Economies and the Spatial Transformation (서비스 경제화와 공간의 변용)

  • 이희연
    • Journal of the Economic Geographical Society of Korea
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    • v.1 no.1
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    • pp.33-56
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    • 1998
  • This study examines the characteristics of service economies and their impacts on the spatial transformation of Korea during the last IS years. This study reviews the different perspectives for the tertiarization Process. It focuses on the spatial variation in the growth and location of Producer service industries. Based on the analyses of industrial and occupational compositions, services. particularly producer services, have played a major role in creating new job opportunities since the late 1980s. The ratio of services to merchandise trade is approximately 1:4, but service trades have increased since the early 1990s. Producer service activities have grown very rapidly, and the information processing service has been over-concentrated in Seoul. Further headquarters of bank and insurance services are overwhelmingly concentrated into Seoul. The firms whose headquarters are located in Seoul have linkage Pattern on a nationwide scale. The pattern of employment growth in producer services shows a clear core-Periphery disparity. In the light of the observed pattern of regional differentiation in producer service employment, some wider implications of the distribution of producer service activities for regional economic Performance are considered.

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Countermeasures and Uses of Origin Cumulative Criteria in the Mega-FTA : Focused on SMEs' Overseas Expansion (Mega-FTA 시대에 원산지 누적기준의 활용과 대책 - 중소기업의 해외진출을 중심으로 -)

  • Lim, Mok-Sam;Lim, Sung-Chul
    • Korea Trade Review
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    • v.41 no.5
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    • pp.89-111
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    • 2016
  • The Mega-FTA is intended for emerging economies, including developed economies, to expand economies of scale in a single market. The Bilateral FTA shall take into account the relevant industries and the inter-country related industries to adjust the origin standard and preferential tariff rates. Therefore, certain competitive industries can expect foreign investment and re-investment in the domestic market as well as expansion of the market in the region. However, the mega-FTA should expand the size of the economy under the same preferential tax rates for many Partner countries. The Mega-FTA can maximize the effectiveness of the agreement by making use of the competitive advantages of the participating countries. In the mega-FTA, Cumulative Criteria should be appropriately used as a supplemental standard of origin. The Cumulative Criteria is an important FTA utilization factor that determines the success of the mega-FTA. Using FTA, Korea should export locally produced materials using cheaper labor force in FTA partner country. In addition, in order to prepare the Mega-FTA, which allows full cumulation, it is necessary to encourage the overseas transfer of low-cost structure materials processing industry so that the material suppliers can be transferred to the area where production cost is lower and raw material supply is easier.

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