• Journal of Korea Water Resources Association
• /
• v.50 no.7
• /
• pp.467-473
• /
• 2017

Recently as algae phenomenon has been intensified, the need for additional dam flushing has been raised. To establish the more rational policies concerning the dam flushing, it is necessary to evaluate the dam flushing. This paper attempts to examine households' willingness to pay (WTP) for dam flushing by using a contingent valuation (CV). Especially, unlike other CV studies which used maximum likelihood estimation (MLE), this study employed Bayesian approach. This study surveyed a randomly selected sample of 1,000 households nation-widely, and asked respondents questions in person-to-person interviews about how they would be willing to pay for the additional dam flushing. Respondents overall accepted the contingent market and were willing to contribute a significant amount (1,909.4 won), on average, per household per year. The aggregate value amounts to approximately 35.7 billion won per year.

• Journal of the Korean Data and Information Science Society
• /
• v.14 no.2
• /
• pp.209-216
• /
• 2003

Contingent valuation method (CVM) is a main evaluation method of nonmarket goods for which markets either do not exist at all or do exist only incompletely; an example is environmental good. A dichotomous choice approach, the most popular type of CVM in environmental economics, employs binary discrete choice models as statistical estimation models. In this paper, we propose a semiparametric dichotomous choice CVM method using local linear model of Fan and Gijbels (1996) in which probability distribution of error term is specified parametrically but latent structural function is specified nonparametrically. The computation procedures of the proposed method are illustrated with a simple design of simulations.

• Journal of Distribution Science
• /
• v.20 no.10
• /
• pp.19-29
• /
• 2022

Purpose: This study was conducted to gauge the economic evaluation and sample distribution of conserving the Belum Royal State Park (BRSP) in Perak, Malaysia and to identify factors influencing its use by the community. This study aims to examine community perception on the conservation of the Belum Royal State Park (BRSP) and maximum community's willingness to pay for park entry permits fees. Research design, data and methodology: A questionnaire survey was conducted involving a total of 280 respondents. The study adopted the Dichotomous Choice Contingent Valuation Approach (DC-CVM) and the Logistic Model, to estimate the maximum community's willingness to pay for park entry permits fees. Results: The results established that the factors of respondent's occupation, income, ecotourism influence on the BRSP and maximum entry price, significantly influenced visitors' decision on community's willingness to pay. The average community's willingness to pay was RM9.68 per person. Conclusions: In conclusion, surveillance and patrols in protected areas should be expanded. The extra expense for ensuring safety can be offset through income from ecotourism that should also benefit the local community on economic evaluation and equal distribution on the BRSP.

• The Journal of Information Systems
• /
• v.13 no.2
• /
• pp.225-240
• /
• 2004

The most critical problem of MIS evaluation is the lack of the systematic framework to cover various factors and viewpoints. To solve this problem, this study takes the multi-level and contingent approach to performance evaluation, composed of three levels: evaluating the contribution of MIS to an organization [strategy level]; evaluating the activities of MIS department or MIS function as an organizational sub-function through the overall MIS lifecycle [function level]; and evaluating the quality or productivity of the application systems as MIS outputs [system level]. Ideal MIS evaluation should include all three levels of the hierarchy with balanced importance. However, MIS evaluationcanbedividedintothreetypes,suchasstrategy-oriented, function-oriented and system-oriented evaluation, depending on the focus and emphasis of evaluation. The usage pattern of each evaluation type is analyzed according to contingent variables of MIS evaluation such as MIS maturity, information intensity and firm size, and top management's intent. It is also found that the firms of higher MIS maturity and top management's intent use the strategy-oriented evaluation type, and the firms with strategy-oriented evaluation type show a higher MIS performance. Further, MIS maturity and top management's intent show contingent effects between evaluation type and MIS performance. Some managerial implications can be drawn based on the results of the study. First, strategy-oriented evaluation of MIS is more important as many firms more often use information technology as a strategic weapon. Second, MIS performance varies with evaluation type. Therefore, the design of MIS evaluation framework should be done carefully in the strategic and managerial contexts. Third, firms are recommend to use a different evaluation type according to organizational characteristics such as MIS maturity and information intensity.

• Environmental Engineering Research
• /
• v.13 no.1
• /
• pp.41-48
• /
• 2008

The valuation of biodiversity is a fundamental step in conservation. The useful framework for analysing the economic value of biological resources is that of total economic value (TEV) and TEV comprises both use and non-use values, the former related to an actual use made of the resource, the latter to a willingness to pay for the resource independently of any use made of it. There are several valuation approacher in environmental economics literature. However, stated preference approach should be introduced for valuation of biodiversity because it can estimate non-use value as well as use value. Contingent Valuation and Conjoint Analysis are representative methods in stated preference and Conjoint Analysis can be more useful for valuation of biodiversity. Futhermore, the combination of ecology and economics to assess biodiversity leads to an integrated framework. Thus, interdisciplinary work is required, involving both economists and ecologists transferring elements or even theories and models from one discipline to another and transforming them for their specific, mutually consistent purpose.

• ETRI Journal
• /
• v.32 no.1
• /
• pp.169-171
• /
• 2010

Even though Internet phone service (IPS) continues to evolve in terms of quality and competitive pricing compared with the public switched telephone network (PSTN), the number of Internet phone subscribers is still low in South Korea. The Korean government decided to apply number portability to the IPS market in 2008. This study expresses its value in monetary terms with a contingent valuation approach. With this methodology, this study investigates the willingness of 316 current PSTN subscribers to pay for IPS, using a specific survey method called double-bounded dichotomous choices, to obtain more accurate data. The results show that the calculated value of Internet phone number portability positively impacts consumer welfare.

• Asia-Pacific Journal of Business
• /
• v.14 no.3
• /
• pp.251-269
• /
• 2023

Purpose - This study estimated the value of tourists' willingness to pay (WTP) to develop and promote regional tourism and minimize external effects using the contingent valuation method (CVM). Design/methodology/approach - To reduce exaggeration bias, a major issue of CVM, a pilot survey was conducted to categorize bid value. Additionally, the payment method was divided into a tourism fund and tourism taxes, and the respondents' answers were reaffirmed in two stages. Findings - As a result of the analysis, the tourists' WTP was estimated to be 5,132 KRW (3.60 USD) for the tourism fund and 1,036 KRW (0.73 USD) for tourism taxes. Research implications or Originality - The results of this study provide implications for securing financial resources and establishing policies in Gangwon province, which promotes special self-governing.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.26 no.4
• /
• pp.83-97
• /
• 2001

Net Present Value (NPV) criterion has been the most widely used criterion to evaluate investment opportunities. However, the analysis based on the NPV criterion falls to consider the managerial flexibility of deferring decisions until major uncertainty is resolved. Recently, real options method attracted a lot of attention as a Powerful approach to address the problem. If investment decision is deferred, the value of the investment opportunity increases but opportunity cost increases at the same time. Therefore, it is important to decide the optimal timing how long the decision can be deferred. In this paper, we developed a model deciding the optimal decision timing. Using the real options approach, the model derived the optimal deferring time until a decision is made. Then, the model was applied to a Korean mobile telecommunications company who wants to invest on the wireless resale business. We believe that this model would be very useful to overcome the problem of NPV decision criterion. With this approach, we can make contingent decisions based on the observation of uncertainly resolutions.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.12 no.19
• /
• pp.57-65
• /
• 1989

This paper describes an artificial intelligence approach to machine diagnosis. Firstly, It considers how the knowledge could be organized and represented. Secondly, it considers which inference strategy could be chosen for contingent situations for the purpose of rationality, efficiency and user-friendliness. Finally, the prototype based on the suggested model is introduced briefly.

• Asia-Pacific Journal of Business
• /
• v.12 no.4
• /
• pp.87-105
• /
• 2021

Purpose - The purpose of this study was to explores how CEO general human capital, one of the most critical issues in recent research, affects compensation schemes. Design/methodology/approach - This study collected the CEOs of S&P500 companies from 2001 to 2009 and contains 4,155 CEO-firm-year observations and 704 different CEOs. Findings - First, only contingent bonus is affected by general human capital and reputation. Second, the career concerns of CEOs are relevant, especially when explaining CEO tenure. Third, we offer an alternative view of what determines the level of cash compensation schemes and the factors that affect the running of a firm. Fourth, we also suggest that the increase in general human capital can be explained by the increase in its relative importance in managing a modern firm. Overall, the results of this study do not only contribute to academics but also important to boards and shareholders. Research implications or Originality - This study intends to fill the gap in the extant literature by examining the relationship between general human capital and compensation schemes.First, we add to the compensation literature by arguing that a cash compensation scheme is efficient for generalist CEOs. We break down CEO cash compensation schemes into fixed and contingent bonus compensation and investigate whether general human capital differentially affects CEO cash compensation schemes, and thus, the sensitivity to unequal pay for human capital. Second, we contribute to the reputation literature by arguing that CEO perceived reputation also affects CEO compensation schemes.