• Journal of Korea Technology Innovation Society
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• v.20 no.4
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• pp.1262-1287
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• 2017

Recently, forecasting for next-generation technologies have influenced the competitiveness of companies. However, in previous studies, only extract factors influencing the adoption of technology have been investigated. Also, there are few researches on the importance of each decision factors or the competition between technologies. In this research, Lotka-Volterra model is used to confirm the technological competition in the new technology choice timing when the competition is intensified due to the emergence of new technologies. For purpose of this study, estimate the LVC model based on the data of the past competition and then derived the factors affecting the technology of competition and substitution from the literature survey. After that, we confirmed the factor value between the past and the present technology competition. The difference between the factor values derived from the previous step is used to revise the model estimated from the past data base. At this stage, regression analysis is used to derive the importance of each factor and use it as the weight. Through the correction model, the competitiveness is identified through 1:1 comparison with competition candidate technology and existing dominant design technology. In this research, we quantitatively propose the possibility that a specific technology can become a dominant design in the next generation, based on the difference in factor values and importance. This results will help the company's R&D strategy and decision making.

• KDI Journal of Economic Policy
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• v.27 no.2
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• pp.205-237
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• 2005

This paper analyzes a mechanism through which product market competition affects allocation of the managerial efforts. There are two types of firms, incumbents and entrants. Each incumbent firm delegates its control to a manager and cannot observe the manager's total effort. The managers of incumbent firms allocate their effort to two different activities: cost reduction (productive effort) and rent protection (unproductive effort). An increase in competition, measured by the number of incumbent firms, has two effects: an "output effect" which decreases the managerial incentive for productive effort, and an "effort substitution effect" that makes managers exert more productive effort and less unproductive effort. This paper identifies the conditions under which product market competition lowers the cost of providing incentives for productive effort and hence, to the conclusion that increased competition leads to increased efficiency.

• ETRI Journal
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• v.32 no.2
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• pp.302-311
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• 2010

In this study, we analyzed consumers' choices of various broadcasting and telecommunication convergence services and time consumption for chosen services by using survey data. A multivariate probit model was used to model consumers' choices of various broadcasting and telecommunication convergence services, and an ordered probit model was used to model consumers' time consumption for chosen services. Factors affecting consumers' choices and time-consumption behavior were identified, and simulation results of market competition and substitution were obtained. Based on these results, it was found that for the time being, consumers are highly locked into existing broadcasting services and are likely to become more price-sensitive to the new broadcasting and telecommunication convergence services. Also, the ways in which individual characteristics affect choices and time consumption were found to be very diverse service by service.

• Proceedings of the Technology Innovation Conference
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• 2006.02a
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• pp.78-102
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• 2006

Networks, services and industries have been converging with the advent of digital convergence by technology advancements of digitalization, broadband and interactivity in the areas of information-communication and broadcasting technologies. Especially, this convergence of technology and market has been blurring the boundary of telecommunication and broadcasting sectors, and the severe competition seems to be inevitable due to the lack of the differentiation in broadcasting media and contents. In this study, we regard the competition phenomenon in the digital convergence between telecommunication and broadcasting as the platform competition in two-sided markets which have been actively studied since 2000, and analyzed it using modified Hotelling's location model. According to the analysis of platform competition on the effects of the differentiation of platform (t) , killer component $(\mu)$ and component compatibility $(\theta)$ , it is shown that two differentiated platforms are simultaneously used in case of the decrease of substitution effects, and the profit of platform with killer contents is increased, but the profit of platforms with higher compatibility is decreased. The policy implication is that it is especially necessary to modify the policy and regulation on media contents considering the growing competition in media. On the other hand, differentiated and reasonable policy is required to make fair competition and active market environment.

• ETRI Journal
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• v.26 no.6
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• pp.665-668
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• 2004

The introduction of a mobile virtual network operator (MVNO) system is expected to increase consumer benefits, boost competition in the mobile market, utilize idle bandwidth, and expedite mobile-fixed line convergence and growth in the mobile Internet market. This research endeavors to study the optimal access charge for an MVNO system, which is expected to be introduced to the Korean mobile communications market. We found that the optimal access charge is higher in the interdependent model than in the independent model if demand for mobile phone service is based on a substitution relationship. We also found that the optimal access charge is higher than the marginal cost.

• BMB Reports
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• v.36 no.3
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• pp.305-311
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• 2003

A modified actinomycin D was prepared with a hydroxyl group that replaced the amino group at the chromophore 2-position, a substitution known to strongly reduce affinity for double-stranded DNA. Interactions of the modified drug on single-stranded DNAs of the defined sequence were investigated. Competition assays showed that 2-hydroxyactinomycin D has low affinity for two oligonucleotides that have high affinities ($K_a\;=\;5-10{\times}10^6\;M^{-1}$ oligomer) for 7-aminoactinomycin D and actinomycin D. Primer extension inhibition assays performed on several single-stranded DNA templates totaling around 1000 nt in length detected a single high affinity site for 2-hydroxyactinomycin D, while many high affinity binding sites of unmodified actinomycin D were found on the same templates. The sequence selectivity of 2-hydroxyactinomycin D binding is unusually high and approximates the selectivity of restriction endonucleases. Binding appears to require a complex structure, including residues well removed from the polymerase pause site.

• International Area Studies Review
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• v.21 no.2
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• pp.143-169
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• 2017

This paper empirically examines how capital structure inertia varies across industries and there is different in industries, and whether this fact is explained by product market competition using non-financial firms listed in KOSP market over periods of 1981 to 2015. In empirical test, I find that firms with more competition environment tend to have inertia behavior in making decision of capital structure. This implies that it is explained by debt discipline effect and it is substitution for product market competitions. Also I find that manager tends to take action actively making decision of capital structure when product market competition is low. Also I show that they use debt to constraint the free cash flow. As a result, I conclude that Korean non-financial firms do not have more strong inertia behavior in capital structure rather than U.S. firms. Second, using OLS estimation, inertia effect disappears while there is strong inertia effect in relationship between inertia and product market competition. This result suggests that transaction cost is not key factor in explaining inertia behavior of capital structure.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2001.10a
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• pp.350-353
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• 2001

As different service classifications for existing and new business data services, it is hard to gather necessary data for the service providers to set their strategies and regulations are also applied asymmetrically to each service provider. Therefore an appropriate market classification is required for the business data services. The Hendry model is selected in this paper to analyze substitution degree among services and then Hendry model is applied to competition among four business data services. As a result, it is shown that these services compete directly and future market shares of services are forecasted and positioning strategy for new services is considered.

• KDI Journal of Economic Policy
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• v.30 no.2
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• pp.129-155
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• 2008

The rate of antibiotics prescription for an acute airway infection significantly varies depending upon the diagnosis type, specialty, and the location of the hospital along with many other related factors. The objective of this study is to empirically investigate the possible relationship between the antibiotics prescription rates for an acute airway infection and the degree of competition in the hospital market regions of mainly the providers of primary medical care services such as clinics, internal medicines, pediatrics and otorhinolaryngology department. Using the data from Health Insurance Review and Assessment Service (HIRA) regarding the hospitals' antibiotics prescription rates for the acute airway infection and controlling for selected variables of demand and supply sectors, this study tries to figure out that the degree of competition in the hospital market, regardless of what type of competition indexes we employed, has a statistically significant effect on the variations of antibiotics prescription rate of the clinics in local areas. This result implies that as an economic consideration itself, the change in the degree of competition in the hospital market can play a crucial role influencing the treatment behaviors of the medical doctors. More specifically, this study reveals that as the degree of competition increases the antibiotics prescription rate goes up. This result means that if the market becomes more competitive in a specific region so that it might cause a reduction in doctor's income, doctors with rational decision-making process, recognize that the benefit created from inducing patients' seemingly unnecessary demand for medical care (income effect) would be higher than the costs associated with sustaining their targeted income (substitution effect). It is because that the doctors are more likely to prescribe antibiotics which create relatively higher margins than other medical care services in order to sustain their targeted income when the hospital market competition becomes tighter. Even though this study empirically confirms that antibiotics prescription can be affected by the economic incentives, it still raises following issues as limitations of the study: first issue is about the representativeness of the hospital regions segregated for this study, which might be weak in explaining whether these regions are mutually exclusive in reality. Patients actually consider the quality of services, transportation cost, time costs, and any other related factors choosing the doctors or hospitals, and in that sense, this study rules out 'border-crossing' in using the medical care services. Second issue arises in capturing the data of antibiotics prescription rate. Since we use the average rate for each medical institution, we cannot figure out the average rate for each patient so that we are not able to control for the variation of patients' medical conditions. It is because of the unavailability of data regarding each patient's medical condition from HIRA. Thirdly, since this study mainly analyzes the medical institutions providing primary care such as clinics, internal medicines, pediatrics, and otorhinolaryngology department, it is skeptical of whether those institutions can represent the hospital market in respective regions and truly reflect the degree of competition. It needs to extend the study areas and disease types as well as any micro data for future studies.

• Journal of Global Scholars of Marketing Science
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• v.18 no.2
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• pp.223-252
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• 2008

In this study, we attempt to propose a choice-based diffusion model with switching cost, which can be used to forecast the dynamic substitution and competition among previous and new products at both individual-level and aggregate level, especially when market data for new products is insufficient. Additionally, we apply the proposed model to the empirical case of substitution and competition among Analog Cable TV that represents previous fixed charged broadcasting service and Digital Cable TV and Internet Protocol TV (IPTV) that are new ones, verify the validities of our proposed model, and finally derive related empirical implications. For empirical application, we obtained data from survey conducted as follows. Survey was administered by Dongseo Research to 1,000 adults aging from 20 to 60 living in Seoul, Korea, in May of 2007, under the title of 'Demand analysis of next generation fixed interactive broadcasting services'. Conjoint survey modified as follows, was used. First, as the traditional approach in conjoint analysis, we extracted 16 hypothetical alternative cards from the orthogonal design using important attributes and levels of next generation interactive broadcasting services which were determined by previous literature review and experts' comments. Again, we divided 16 conjoint cards into 4 groups, and thus composed 4 choice sets with 4 alternatives each. Therefore, each respondent faces 4 different hypothetical choice situations. In addition to this, we added two ways of modification. First, we asked the respondents to include the status-quo broadcasting services they subscribe to, as another alternative in each choice set. As a result, respondents choose the most preferred alternative among 5 alternatives consisting of 1 alternative with current subscription and 4 hypothetical alternatives in 4 choice sets. Modification of traditional conjoint survey in this way enabled us to estimate the factors related to switching cost or switching threshold in addition to the effects of attributes. Also, by using both revealed preference data(1 alternative with current subscription) and stated preference data (4 hypothetical alternatives), additional advantages in terms of the estimation properties and more conservative and realistic forecast, can be achieved. Second, we asked the respondents to choose the most preferred alternative while considering their expected adoption timing or switching timing. Respondents are asked to report their expected adoption or switching timing among 14 half-year points after the introduction of next generation broadcasting services. As a result, for each respondent, 14 observations with 5 alternatives for each period, are obtained, which results in panel-type data. Finally, this panel-type data consisting of $4{\ast}14{\ast}1000=56000$observations is used for estimation of the individual-level consumer adoption model. From the results obtained by empirical application, in case of forecasting the demand of new products without considering existence of previous product(s) and(or) switching cost factors, it is found that overestimated speed of diffusion at introductory stage or distorted predictions can be obtained, and as such, validities of our proposed model in which both existence of previous products and switching cost factors are properly considered, are verified. Also, it is found that proposed model can produce flexible patterns of market evolution depending on the degree of the effects of consumer preferences for the attributes of the alternatives on individual-level state transition, rather than following S-shaped curve assumed a priori. Empirically, it is found that in various scenarios with diverse combinations of prices, IPTV is more likely to take advantageous positions over Digital Cable TV in obtaining subscribers. Meanwhile, despite inferiorities in many technological attributes, Analog Cable TV, which is regarded as previous product in our analysis, is likely to be substituted by new services gradually rather than abruptly thanks to the advantage in low service charge and existence of high switching cost in fixed charged broadcasting service market.