• Proceedings of the KIEE Conference
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• 2005.07a
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• pp.775-777
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• 2005

In this paper, effects of the subsidy in the electricity market on the market equilibrium are analyzed. The generation competition markets are considered as the basic market structure. The market equilibrium with Cournot game model is derived, first. Then, the variation of Nash equilibrium is investigated when the subsidies to generation companies are provided. The market equilibrium with the subsidy in the electricity market, which is equivalent to the subgame perfect equilibrium, is analytically derived using Stackelberg game model and backward induction method. From this, how the provisions of subsidy to generation companies can affect the strategic behaviors of the generation companies and corresponding market equilibrium are explored, in this paper. Numerical examples are provided to illustrate the basic idea of this paper.

• Review of Culture and Economy
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• v.20 no.1
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• pp.3-20
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• 2017

This study proposes that the cultural corporation can be more profitable by adopting the 'Buy-One Give-One' Business Model (BOGO BM) under certain conditions. Specifically, the conditions are that 1) consumers' utility for donating is high enough and 2) the production cost is low enough due to economies of scale or process innovation from employee's intrinsic motivation. We adopt a mathematical model where the demand function is a simple linear function and two companies compete with each other by choosing their quantity of output (the Cournot model). Specifically, we investigate the profitability of the BOGO BM in four situations: 1) a monopolist enjoying reduced cost due to process innovation from employee's intrinsic motivation, 2) a monopolist enjoying reduced cost due to economies of scale, 3) the duopoly with BOGO BM and a general company, 4) the duopoly with two BOGO BM companies. In each situation, BOGO BM can be more profitable than other general companies can under certain conditions.

• Proceedings of the KIEE Conference
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• summer
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• pp.695-697
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• 2004

현재 전력시장에서 발생하는 게이밍을 반영하기 위한 수리적 모델로서 가장 보편적으로 사용되는 이론 중의 하나가 쿠르노 모델이다. 쿠르노 모델을 실제전력시장에 적용할 때 가장 어려운 점 중의 하나는 정화한 해당 모델에 사용되는 수요와 시장가격간의 관계를 정식화한 수요반웅함수(혹은 역수요함수)를 구하는 것이 다. 기존 모델의 경우 장기간에 걸친 탐문조사나 데이터를 바탕으로 가격탄력성을 구하는 방식을 취하고 있다. 그러나 수요는 전기설비의 교체 소비자의 기호 등 여러가지 변수로 지속적으로 변할 수 있기 때문에 이러한 고정적인 가격탄력성을 적용하는 것은 문제점이 될 수 있기 때문에 본 논문에서는 이러한 가격탄력성을 일정 거래주기 마다 갱신해줄 수 있는 방법을 제안하고자 한다.

• Journal of Korea Port Economic Association
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• v.35 no.3
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• pp.1-18
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• 2019

The competition between port authorities (PAs) and terminal operating companies (TOCs) in providing port logistics services has gained importance. The PAs enter into leasing contracts with TOCs in various ways. This study aims to model a contract method that maximizes the joint profit between a PA and a TOC. Particularly, this study aims to model the equilibrium by comparing four types of contract schemes in the non-coordination, cooperation, Cournot, and collusion models. The results of the analysis show that the two-part tariff scheme generates a higher joint profit than the fixed and fee contracts. It is understood that risk- and profit-sharing between the PAs and TOCs helps the latter to maximize the throughput and the joint profit. These results are expected to provide an important theoretical basis for decision-making about port rent and freight between the PAs and TOCs.

• International Area Studies Review
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• v.18 no.3
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• pp.47-66
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• 2014

A noticeable aspect of Korean firms' outward sequential FDIs to China is that they occur sequentially, which means that they implement the outward FDIs to China with a long-term perspective. To analyze the strategic advantages of sequential investment, we introduce Cournot type quantity competition model. According to the model, three important implications are derived. First, sequential FDIs enhances the Korean parents' production capabilities. Second, the parents are more likely to establish new Chinese subsidiaries as they stay longer in China. Third, the production effect of sequential investments incurs more sequential investments. Some regression models are tested for verifying the predictions. According to empirical results, three important results are found. First, initial entry mode affects the size expansion of the Korean parents. Second, the longer the duration of intial subsidiary in China, the more the sequential investment will be. Third, sequential investments are positively associated with the productivity of the Korean parents.