• Journal of Electrical Engineering and Technology
• /
• v.1 no.1
• /
• pp.1-7
• /
• 2006

In an electricity market, the spot market is normally integrated with a forward or future market. The advantage of the forward market is to allow the market participants to deal in a part or the whole trading portfolio at a fix price in advance and to avoid risk associated to the uncertain price of the spot market. Japan has introduced a continuous auction base forward market from April 2005. This paper analyzes the Japanese forward market rules and operations, and introduces a new algorithm that may improve the efficiency of the market itself. The proposed algorithm enables us to give consideration to the specific characteristics of the power system and to integrate them in the auction mechanism. The benefits of the proposed algorithm are verified on an electronic simulation platform and the results described in this paper.

• Korean System Dynamics Review
• /
• v.13 no.2
• /
• pp.5-23
• /
• 2012

This paper studies dynamic relationship between cash market, forward market, and options market, from the perspective of systems thinking. It is shown that an exogenous shock to forward market can yield almost the same impact to the cash market, given a practically reasonable condition, but not vice versa. As far as options market is concerned, it matters what kind of options we deal with, who are long the option, and whether the option market maker performs dynamic hedging or not. In some cases, it is possible for the spot price to become unstable and diverge rather violently due to a strong negative feedback between the markets.

• Journal of Korea Port Economic Association
• /
• v.19 no.2
• /
• pp.111-139
• /
• 2003

In this paper, the unbiasedness hypothesis cannot be rejected for JPY. It means that Japanese forward exchange market is efficient. This implies that there would not be an unusual profit from speculation. However, the unbiasedness hypothesis can be rejected for THB, HKD, IDR. It means that Asian forward exchange market is inefficient. This implies that there would be an unusual profit from all available information. This suggests that forward exchange rates cannot be an unbiased estimator of future spot exchange rate. This result explains that the actual pricing for forward rate is not based on the international financial market's pricing mechanism of interest rate parity theory, but rather depends upon that simple market expectations and aspirations.

• Journal of Korean Society of Water and Wastewater
• /
• v.30 no.5
• /
• pp.521-532
• /
• 2016

Seawater desalination market after global economic crisis has been stalled due to the market uncertainties and decreased demand in desalination. It is important to review the status of the market and to estimate the appropriate share of Forward osmosis-Reverse Osmosis (FO-RO) hybrid desalination technology by figuring out the outlook of the desalination market. Main part of the desalination market will still be MENA (Middle East and North Africa) in the near future due to the fast population increase and high dependency of fossil fuel in the region. The market for FO-RO hybrid technology, however, might be smaller than the conventional SWRO desalination market anyway because of aesthetic issues from using wastewater as raw water and higher costs associated with capex. Therefore, it is essential to improve FO membrane performance and system operation technologies in order to make the hybrid technology attractive compared to the conventional SWRO technology.

• The Transactions of the Korean Institute of Electrical Engineers P
• /
• v.59 no.3
• /
• pp.263-267
• /
• 2010

Although electricity market structures may be different from each country, they have a long-term forward market and a short-term spot market in general. Particularly, a bilateral contract transacted at a long-term forward market fixes the electricity price between a genco and a customer so that the customer can avoid risk due to price-spike in the spot market. The genco also can make an efficient risk-hedging strategy through the bilateral contract. In this paper, we propose a new mechanism for deriving the optimal bilateral contract price using game theory. This mechanism can make the customer reveal his true willingness to purchase so that an adequate bilateral contract price is derived.

• Proceedings of the KIEE Conference
• /
• summer
• /
• pp.701-703
• /
• 2004

Although the electricity market structure worldwide may be different in kinds, there generally exists long-term forward market and short-term spot market. Particularly, the bilateral contract in long-term forward market fixes the price between a genco and a customer so that the customer can avoid risks due to price-spike in spot market. The genco also can make an efficient risk-hedge strategy through this bilateral contract. In this paper, we propose a new mechanism for evaluating the optimal bilateral contract price using game theory. This mechanism makes a customer reveal his/her own willingness to purchase electricity so that a fair bilateral contract price can be derived.

• The Journal of Fisheries Business Administration
• /
• v.40 no.1
• /
• pp.51-74
• /
• 2009

The purpose of this study is to ascertain that how the futures market of the Japanese frozen shrimp that is the only fisheries asset all over the world can be efficient. Accordingly, this paper examines efficiency and information flow of the Japanese frozen shrimp market using data from Kansai Commodities Exchange frozen shrimp futures closing prices and spot prices. And then this paper estimates a forward price model using that data. From the model, risk premium is estimated and we could also analyse the future information flow into the futures market which reveals future spot prices. This thesis reached to conclusions as follows: First, the null of zero risk premium is rejected and the value of that is negative. Second, the time pattern of information flow into the futures market is that most of the information on future price arrives within a week and for the last week, most of relevant information is already incorporated. The result of this study contrasts with that of Stockman(1978) about currency futures market of U.S.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.12
• /
• pp.795-807
• /
• 2020

The more liquid the capital market, the more attractive it will be for investors to place their money in the capital market. Therefore, the purpose of this study is to investigate the factors that influence stock liquidity of manufacturing sector companies listed on the stock exchange in Indonesia. The independent variables used in this study are forward-looking information disclosure, institutional ownership, foreign ownership, and board activity with information asymmetry as an intervening variable and stock liquidity as the dependent variable. The population of this study is manufacturing sector companies listed on the Indonesian stock exchange (IDX). Samples are selected based on the random sampling method, and the number of samples is calculated based on the Slovin formula. The sample was 59 manufacturers, and data was annual reports (for 2 years) and stock transactions from 2016 to 2017. The results of the study showed that forward-looking information disclosure had a significant effect on information asymmetry. Information asymmetry and foreign ownership have a significant impact on stock liquidity, whereas information asymmetry mediates the relationship between forward-looking disclosures and stock liquidity. Furthermore, the accuracy of information about the certainty of business activity both now and in the future can instill confidence in stakeholders in interacting and cooperating.

• Asia Marketing Journal
• /
• v.16 no.1
• /
• pp.35-69
• /
• 2014

The impact of competition on pricing has been studied in the context of counterfactual merger analyses where expected optimal prices in a hypothetical monopoly are compared with observed prices in an oligopolistic market. Such analyses would typically assume static decision making by consumers and firms and thus have been applied mostly to data obtained from consumer packed goods such as cereal and soft drinks. However such static modeling approach is not suitable when decision makers are forward looking. When it comes to the markets for durable products with indirect network effects, consumer purchase decisions and firm pricing decisions are inherently dynamic as they take into account future states when making purchase and pricing decisions. Researchers need to take into account the dynamic aspects of decision making both in the consumer side and in the supplier side for such markets. Firms in a two-sided market typically subsidize one side of the market to exploit the indirect network effect. Such pricing behaviors would be more prevalent in competitive markets where firms would try to win over the battle for standard. While such qualitative expectation on the relationship between pricing behaviors and competitive structures could be easily formed, little empirical studies have measured the extent to which the distinct pricing structure in two-sided markets depends on the competitive structure of the market. This paper develops an empirical model to measure the impact of competition on optimal pricing of durable products under indirect network effects. In order to measure the impact of exogenously determined competition among firms on pricing, we compare the equilibrium prices in the observed oligopoly market to those in a hypothetical monopoly market. In computing the equilibrium prices, we account for the forward looking behaviors of consumers and supplier. We first estimate a demand function that accounts for consumers' forward-looking behaviors and indirect network effects. And then, for the supply side, the pricing equation is obtained as an outcome of the Markov Perfect Nash Equilibrium in pricing. In doing so, we utilize numerical dynamic programming techniques. We apply our model to a data set obtained from the U.S. video game console market. The video game console market is considered a prototypical case of two-sided markets in which the platform typically subsidizes one side of market to expand the installed base anticipating larger revenues in the other side of market resulting from the expanded installed base. The data consist of monthly observations of price, hardware unit sales and the number of compatible software titles for Sony PlayStation and Nintendo 64 from September 1996 to August 2002. Sony PlayStation was released to the market a year before Nintendo 64 was launched. We compute the expected equilibrium price path for Nintendo 64 and Playstation for both oligopoly and for monopoly. Our analysis reveals that the price level differs significantly between two competition structures. The merged monopoly is expected to set prices higher by 14.8% for Sony PlayStation and 21.8% for Nintendo 64 on average than the independent firms in an oligopoly would do. And such removal of competition would result in a reduction in consumer value by 43.1%. Higher prices are expected for the hypothetical monopoly because the merged firm does not need to engage in the battle for industry standard. This result is attributed to the distinct property of a two-sided market that competing firms tend to set low prices particularly at the initial period to attract consumers at the introductory stage and to reinforce their own networks and eventually finally to dominate the market.

• The Transactions of The Korean Institute of Electrical Engineers
• /
• v.56 no.6
• /
• pp.1017-1022
• /
• 2007

In this paper, we try to analyze the likelihood of exercising the power of market dominance by certain generators in future power industry of Korea. Firstly, we estimated installed generation capacity and sales volume of electricity in Korea, based on 'The 3rd Long Term Power Plan' which was announced in December 2006. Secondly, we calculated HHI, an index showing the degree of concentration of an industry, and RSI, an index showing how adequate the supply of goods or services of an industry is, using Fast-Forward. Thirdly, assuming a major generator employs the strategy of withholding a part of its available capacity at a peak time, we simulated hypothetical movement of SMP over a certain period of time, which is compared with that obtained without assuming such strategy to generate Lerner Index. an index showing the degree of market power of a monopoly. Regulators, home and abroad, have not given much interest in analyzing the effect of market dominance that is likely to be exercised by certain players in the future. That said, this paper provides insight into developing methodologies of analyzing and mitigating such effect by proposing the above indices to gauge it. In addition, this paper also shows the potential impact of employing capacity withholding strategy on the financial account of a dominant generator.