• Journal of Distribution Science
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• v.17 no.4
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• pp.5-16
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• 2019

Purpose - This study examines whether price cartel firms perform downward earnings management to avoid or minimize penalty surcharges levied by the Korea Fair Trade Commission and analyzes such earnings management in distribution industry. Research design, data, and methodology - We use 247 firms from 64 price cartel cases in the period of 2011-2016, and collect data from 3 years before to 3 years after the start of price cartel. Earnings management is measured by discretionary accruals. Three discretionary accrual estimation models are employed; modified Jones model, ROA adjusted modified Jones model and CFO-adjusted modified Jones model. For pre- and post-cartel periods, one year, two year, and three year windows are used. Additional empirical analyses are performed for distribution industry sub-sample of 25 cartel firms. Result - The regression results show that cartel firms' discretionary accruals are significantly lower in the period after the start of price cartel than before. And discretionary accruals are lower in cartel firms than in non-cartel firms during the cartel period. Cartel firms in distribution industry also show the earnings management similar to those in other industries. Conclusions - These two findings lead to the conjecture that managers of cartel firms manage their earnings downward. This behavior is indistinguishable between firms in distribution industry and other industries.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.36 no.4
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• pp.77-83
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• 2013

This study is to develop a mathematical analysis model to grasp the behaviors of cartels. Cartels are formed tacitly and cause tremendous damage to consumers in modern society which is composed of advanced industry structure. The government authorities have instituted the leniency programs to respond cartels. However, cartels will continue unless there are legal sanctions against cartels based on an accurate analysis of leniency programs. The proposed cartel equilibrium analysis model is a mathematical behavior model which is based on the existing methods and the prison's dilemma of game theory. Therefore, the model has a form of pay off matrix of two players. We use a iterated polymatrix approximation (IPA) method to deduct a Nash equilibrium point. The model is validated by an empirical analysis as well.

• Environmental and Resource Economics Review
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• v.12 no.4
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• pp.637-661
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• 2003

This paper analyzes the impact of import liberalization of petroleum product market in 1997 on the behavior of a domestic industry, regarded as a typical oligopoly. Based on the theory of implicit cartel, two regression equations were formulated and estimated for domestic production and refinery margin using monthly data for the period from Jan. 1994 to June 2003. Estimation results show that not only did domestic production rise sharply but also the refining cost fell substantially throughout 1996 before the actual liberalization of imports, Such a response is clearly consistent with the implicit cartel theory, which suggests that once the difficulty of maintaining a cartel in the future is recognized, the cartel immediately collapses and anticipation of import liberalization can cause immediately lowering market price as well as an immediate expansion of the supply by a domestic industry. However, the significant reduction of refinery cost accompanied by a large contraction in domestic output after the actual implementation of import liberalization can be explained by the collapse of implicit cartel caused by the anticipated liberalization of imports. Thus, import liberalization in the sense of allowing entry of foreign producers into domestic market has seemed to be an effective means to weaken market power and induce more competitive conduct of domestic firms.

• Journal of Korea Fair Competition Federation
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• no.69
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• pp.2-8
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• 2001

• Journal of Korean Philosophical Society
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• no.123
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• pp.137-185
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• 2018

This article aims to deconstruct the mechanism of male domination that constantly reproduces the hegemonic class of men. In order to overcome misogyny, we should no longer deny the ontological dimension of the reality of women's oppressions and the pre-eminence of the material condition of women's existence. In addition, the possibility of the category of women as a modality of resistance should be taken into consideration. First, I will highlight the correlation between penis and phallus according to which the phallus refers to the penis which is malleable and fragile and which disappears without being castrated by the external factor. From here we could deduce the fragility and imperfection, the non-absoluteness of the phallic order. Secondly, I will analyze the mechanism of penis-narcissism, which is the modality of the constitution of the individual identity of man. The penis is not only a physiological organ, but a site of self-estimation and the validity of the succession of power and authority of the father's law. With this penis-narcissism, man is constituted as a hegemonic body that can let itself go without worrying about the reactions of others. Thirdly, I will focus on the mechanism of the penis-cartel which is the modality of the formation of the collective identity. The penis-cartel is reinforced by the mutual affirmation of the superiority of men among themselves, but also by the permission and the tacit agreement of their absurdity and lack of rationality and corruption. Because the privilege of men is not monopolized by a small part of the elite, but is consciously and unconsciously shared by all men who are part of the hegemonic and collective category. In order to deconstruct the penis-narcissism and the penis-cartel, it is necessary to demonstrate that the penis is not a self-sufficient body, nor a closed and impermeable body, but that it is a porous body where the organ serves both ejaculation and urinary ejection. The penis is a porous body that is at once the site of sublimity and degradation, purity and impurity. In addition, the penis is no longer an all-powerful and aggressive organ, but it is a malleable and fluid flesh that constantly changes its shape. Linked to a phallus-organ that is the notion of Jacques-Alain Miller, it is a site of deficiency and vulnerability that is not the axis of the penis-cartel. It is through the notion of the double porosity of the penis and the phenomenology of the flesh of the penis, I try to provide the modality of undoing the reproductive mechanism of predatory masculinity. Because this would be an effective strategy to overcome misogyny.

• Journal of Korea Fair Competition Federation
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• no.114
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• pp.2-6
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• 2005

시장의 가격시스템을 파괴하고 소비자에게 피해를 끼치는 카르텔은 그 해악이 매우 심각하기 때문에 경쟁 당국의 역할 중에서 카르텔을 억제하는 것만큼 중요한 일이 없다. 여기서는 이를 위한 공정거래위원회의 최근의 노력을 살펴보고 몇 가지 추가적인 법집행 강화방안 및 이를 위한 역량의 강화방안을 제시해 본다.

• The Korean Journal of Air & Space Law and Policy
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• v.30 no.1
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• pp.117-149
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• 2015

On May 16, 2014 the Supreme Court of Korea rendered its decision with respect to litigation filed by All Nippon Airways Co., Ltd. ("ANA") for revocation of an order of correction and payment of a penalty imposed by the Korea Fair Trade Commission ("KFTC"). On or around September 2002, ANA and various airlines operating air cargo service from Japan to Korea were allegedly to have agree to introduce of fuel surcharge into their rates on cargo fares in an attempt to recoup falling profits from rising of oil price. As this hard core cartel was per se prohibited under Korean competition law (The Monopoly Regulation And Fair Trade Act), KFTC began an investigation and consequently with fruitful results imposed an amount of penalty and issued an order of prohibition. ANA protested against this imposition by filing suit against KFTC under the reasons that (1) their agreement was simply pursuant to the relevant laws and regulations including Air Transport Agreement between Korea and Japan, (2) there was an administrative guidance from Japanese government to allow this agreement, (3) extraterritorial application of Korean competition law to the agreement in this matter was improper as it was made within Japan and targeted only for the shipment from Japan to Korea: accordingly there is not a direct and serious effect between the agreement and any result of anti-competitive. This article aims to review ANA's allegation and the judgement delivered by Korean court under some issues respectively; (1) whether there is an effectively actual anti-competitive cartel between airlines including plaintiff, (2) whether filed rate doctrine is reasonable and applicable in this case for precluding wrongfulness, (3) what is the reasonable limitation of boundaries in extraterritorial application of Korean competition law. Additionally, this article also suggests to concern particular features of air transport business as an regulated industry in judging the unfair restrain on competition.

• Korean Institute of Interior Design Journal
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• v.21 no.6
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• pp.177-185
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• 2012

The endowed privilege to an established profession acts as an important motivation related to professionalization of occupations. The established profession enjoys cognitive, legal, and economic privilege. This study analyzes the professionalization process of interior design. Specifically, the study evaluates the suitability of the body of knowledge and professional ethos(i.e., protection of citizen's health, safety, and welfare), while analyzing the professionalization of interior design in the United States. The research aims at proposing a reference point for the professionalization of Korean interior design. Utilized data include research paper, court sentencing, and reports published by related professional organizations. The study concludes that 3E's are a means of professionalization of interior design, while separating interior design from interior decorating. In addition, there is no evidence to the protection of citizen's HSW. Rather, it increases service costs and restricts the job opportunities. When the public is not persuaded, the argument related to the necessity of license for the protecting citizen's HSW can be consumed as a mere rhetoric, concealing intentions for formulating a cartel. Thus, this study proposes that the professionalization of interior design may focus on the establishment of identity and body of knowledge, which are specific to interior design.

• Asian Journal of Business Environment
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• v.11 no.4
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• pp.31-38
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• 2021

Purpose: This paper uses the resource-dependency theory to present the case of the Pakistan sugar industry to highlight how the industry uses a strategic alliance to gain a powerful bargaining position over its critical dependencies. The case of the Pakistan sugar industry is well-known and it is common knowledge that the alliance or the cartel within it is responsible for frequent price hikes and sugar supply shortages in the country. Research design, data and methodology: We use a case study, qualitative document analysis design to trace how the alliance overcomes its various dependencies, and in doing so, how does it harm various stakeholder interests. Results: This paper finds that the sugar industry alliance maintains its bargaining power by manipulating sugar supply through horizontal alliances, political affiliations, underselling and under-reporting sugar stocks, purchasing sugarcane from the black market, and by gaining billions of rupees in export subsidies by hoarding stock and using its political connections. Conclusion: The paper concludes by providing a summary of the measures which the government has taken to curb this anticompetitive conduct; the most important of which is the removal of protectionist measures for sugar trade and allowing market forces to control the demand and supply of sugar in the local market.

• Journal of Korea Trade
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• v.23 no.2
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• pp.46-58
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• 2019

Purpose - This paper analyzes how Research and Development (R&D) cartelization and Research Joint Ventures (RJV) affect firms that engage in Cournot competition in their product market using a model in which the Home and Foreign firm produce differentiated products and export their total output to a third country's market. Design/Methodology - In a two-stage game, research expenditures incurred in the first stage improve product quality and are subject to various degrees of spillovers. We consider four different scenarios. Findings - In a symmetric equilibrium we observe the following: (i) an RJV that cooperates in R&D decision yields the highest R&D expenditure. However, the scenario which yields the lowest expenditure depends on the extent of differentiation between the goods and the degree of spillovers; (ii) RJV cartelization yields the highest product quality, output, and consumer surplus in the third country; however, the lowest is produced by R&D competition if spillovers are strong and by R&D cartelization if spillovers are weak; and (iii) each firm's profit is at its minimum in R&D competition and its maximum in RJV cartelization. Furthermore, if spillovers are strong, the profit of each firm in R&D cartelization is greater than that in RJV competition, and vice versa. Originality/value - By analyzing product innovation in international markets, we can find similarities and differences between process R&D and product R&D in international markets.