• Title/Summary/Keyword: Incentives

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An Analysis of Income Tax Incentives on Green Consumption (환경친화적 소비에 대한 소득세 지원의 도입방안)

  • Kim, Seung-Rae;Kim, Sung Tai;Lim, Byung In
    • Journal of Environmental Policy
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    • v.13 no.3
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    • pp.75-107
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    • 2014
  • For the purpose of carbon mitigation, Korea needs to introduce stronger market-based economic incentives to promote environmentally-friendly behaviors of consumers. In particular, the government could consider introducing tax benefits on income taxation for green consumption, as well as public education and campaign, to stimulate environmentally-friendly consumption behaviors. In this respect, using an analysis of Input-Output and Household Income and Expenditure Survey in Korea, this paper designs four major scenarios related to income tax benefits for green consumption, and then explores the economy-wide effects of those proposed policies.

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A Study on Socially Responsible Clothing Acquisition Behavior respond to Altruistic and Economic Incentives toward Recycling of Clothing(Part II) (재활용 동기 부여에 따른 사회책임적 의류 획득 행동에 관한연구(제2보))

  • 박재옥;장경혜
    • Journal of the Korean Society of Clothing and Textiles
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    • v.23 no.5
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    • pp.715-725
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    • 1999
  • The purpose of this study is to understand the Korean consumers' socially responsible clothing acquisition behavior respond to altruistic and economic incentives toward recycling of clothing and the relations between demographic variables and acquisition behavior. Data were collected from the adult females residing in Seoul. Judgement Sampling were performed twice and total 549 sets of answers were used for final analysis. The results are as follows : First the consumers of favoring altruistic and economic incentive prefer to acquire clothing with free cost and the consumers favoring altruistic incentive tend to acquire clothing through unknown persons,. Second the analysis of relationship between the attitude toward recycling incentives and the demographic variables shows that the consumers with relatively higher education have strong will for recycling by altruistic incentive. Third the analysis of relationship between acquisition behavior and the demographic variables shows that consumers with relatively lower education normally acquire clothing from unknown persons and from acquaintance. In addition married persons tend to acquire clothing at free of cost.

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Marital Status and Satisfaction of Online Shoppers in the Beauty and Cosmetic Sector in Vietnam

  • NGUYEN, Thuan Thi Nhu;HOMOLKA, Lubor
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.2
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    • pp.1005-1015
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    • 2021
  • We investigate the impact of marital status on the levels of satisfaction of online shoppers in the beauty and cosmetics industry in Vietnam. We find a significant difference in satisfaction between married and divorced/separated online shoppers. More specifically, the latter reveals higher level of satisfaction than the former. Extended analyses further show that this finding is only observed for female online shoppers whilst it is insignificant for their male counterparts. Moreover, we find significant differences in determinants of customer satisfaction between three different groups of online shoppers: single, married, and divorced/separated. While married individuals' satisfaction is affected by all factors (Online shopping experience; Seller Services; External Incentives; Security/Privacy), that of their divorced/separated peers are influenced by only seller services and external incentives. Also, single participants are satisfied with their online shopping driven by their online shopping experience and external incentives. Our findings contribute to the stream of customer satisfaction literature, and to the studies in beauty and cosmetics sector as well as online shopping trends in Vietnam. They contain implications for existing online businesses and new or potential market entrants as to which customer demographic factors have significant influences in terms of customer psychology, behaviour and their satisfaction.

Sellers' Economic Incentives to Disclose Negative Information in Online Markets

  • HUH, Seung
    • The Journal of Economics, Marketing and Management
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    • v.9 no.2
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    • pp.33-43
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    • 2021
  • Purpose: This study aims to verify sellers' economic incentives for voluntarily disclosing negative information in online markets and provide practical guidelines to online sellers in terms of whether, when, and how sharing low quality to buyers increase sales. Research design, data and methodology: Our model examines the number of bidders in Internet auctions to measure potential demand and uses count data analysis following previous studies that have also analyzed the number of bidders in auctions. After checking over-dispersion and zero-inflation in our data, we have run a Poisson regression to analyze the effect of sharing negative information on sales. Results: This study presents a counterintuitive result that low-quality sellers can increase their demand by fully disclosing negative information in an online market, if appropriate risk-reducing methods are employed. Our finding thus shows that there exists economic incentive for online sellers to voluntarily disclose negative information about their products, and that the context of transactions may affect this incentive structure as the incentive varies across product categories. Conclusions: As the positive impact of disclosing negative information has rarely been studied so far, this paper contributes to the literature by providing a unique empirical analysis on the impact of sellers' honesty on sales. By verifying economic incentives of disclosing low quality with actual online sales data, this study suggests practical implications on information disclosure strategy to many online sellers dealing with negative information.

Split Ratings and Asymmetric Cost Behavior: Empirical Evidence from Korea

  • KIM, Yujin;AN, Jungin
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.7
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    • pp.185-196
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    • 2022
  • The purpose of this study is to examine the effects of split ratings on earnings management through cost adjustments based on asymmetric cost behaviors. Using a sample of 2,027 Korean firm-year observations over the 2002-2019 period, we analyze whether a firm deliberately reduces discretionary costs, such as selling, general, and administrative (SG&A) expenses, to improve profits when it receives multiple ratings from credit rating agencies (CRAs). While examining earnings management incentives in the presence of split ratings, we also investigate the moderating effects of Chaebols, Korea's unique corporate governance structure. We find that split-rating firms show less stickiness in SG&A costs compared to non-split-rating firms when sales decrease. This result implies the deliberate reduction of discretionary costs to improve earnings in the presence of split ratings, which are more likely to change in future credit assessments. We also find that the incentives for earnings management of split-rating firms are limited in Chaebol firms, which have high levels of socio-economic surveillance and support affiliated firms through the internal market of corporate groups. This study contributes to existing research by identifying new determinants of cost behavior by using the framework of asymmetric cost behavior in relation to earnings management incentives.

A Study of Incentive System Problems for Busan.Gwangyang Port (부산항.광양항 인센티브제도의 문제점)

  • Won, Yangyeon;Kim, Dogeun
    • Journal of Korea Port Economic Association
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    • v.29 no.1
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    • pp.23-45
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    • 2013
  • This paper aims to identify the problems of incentives and find a solution to them by empirically analyzing the port incentives and the development of cargo volume. The current method of paying performance incentives and cargo-increase incentives makes it is possible for shipping companies to get the maximum incentives just by regulating cargo volumes without increasing them. Since the processing volume of transshipment cargo of the Busan port is over the volume eligible for the maximum incentive determined by the tie-up of shipping companies, the transshipment cargo can decrease. The incentive of the Busan port based on the cargo record and increase does not affect the increase of transshipment cargo, only to suffer a loss, and thus a new incentive system is needed that does not allow shipping companies to regulate cargo volumes. Based on the result of this study, We have to apply the even-handed incentive rule which pays the incentive for the cargo volume of the pertinent year with the unit price per 1 TEU to avoid the chicken game among the ports.

Study of Moderating Effect of Incentives on the Relationship between Digital Literacy and Informal Learning of Office Workers: A Chinese Case (사무직 직원의 디지털 리터러시와 무형식 학습의 관계에서 인센티브의 조절효과에 대한 연구: 중국의 사례를 중심으로)

  • Chi, Yuchen;Paek, Jeeyon;Cho, Hyun-Jung;Lee, JiYon
    • Knowledge Management Research
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    • v.23 no.3
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    • pp.173-192
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    • 2022
  • This study discusses whether digital literacy of Chinese white-collar workers influences informal learning and investigates the moderating effect of incentives on the relationship between digital literacy and informal learning. The aim of the research is twofold. First, it attempts to determine whether digital literacy of white-collar employees has a positive correlation with informal learning. The study further examines whether incentives from companies-material and non-material-have a moderating effect on the relationship between digital literacy of white-collar employees and informal learning. The ability to handle ICT devices and to utilize information both indicate positive correlations with knowledge acquisition through job performance, cultivation of self-development ability, and learning. Signficantly, the material and non-material incentives had a moderating effect only on the relationship between the ability to utilize information and knowledge acquisition through job performance, which was not revealed in other relationships. Overall, the findings may have practical implications of analysis to hire and train workers in Chinese companies and to design compensation schemes for corporate incentives.

Optimal Incentives for Customer Satisfaction in Multi-channel Setting (멀티채널에서의 고객만족제고 인센티브 연구)

  • Kim, Hyun-Sik
    • Journal of Distribution Research
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    • v.15 no.1
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    • pp.25-47
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    • 2010
  • CS is one of the major concerns of managers in the world because it is well known to be a key medium construct for firms' superior outcome. One of the major agents for CS management is retailers. Firms try to manage not only employees but also retailers to promote CS behaviors. And so diverse incentives are used to promote their CS behaviors under diverse channel setting such as multi-channel. However in spite of the rising needs there has been scarce studies on the optimal incentive structure for a manufacturer to offer competing retailers at the multi-channel. In this paper, we try to find better way for a manufacturer to promote the competing retailers' CS behaviors. We investigated how to promote the retailers' CS behavior via game-theoretic modeling. Especially, we focus on the possible incentive, CS bonus type reward introduced in the studies of Hauser, Simester, and Wernerfelt(1994) and Chu and Desai(1995). We build up a multi stage complete information game and derive a subgame perfect equilibrium using backward induction. Stages of the game are as following. (Stage 1) Manufacturer sets wholesale price(w) and CS bonus($\eta$). (Stage 2) Both retailers in competition set CS effort level($e_i$) and retail price($p_i$) simultaneously. (Stage 3) Consumers make purchasing decisions based on the manufacturer's initial reputation and retailers' CS efforts.

    Structure of the Model We investigated four issues about the topic as following: (1) How much total incentive is adequate for a firm of a specific level of reputation to promote retailers' CS behavior under multi-channel setting ?, (2) How much total incentive is adequate under diverse level of complimentary externalities between the retailers' CS efforts to promote retailers' CS behavior?, (3) How much total incentive is adequate under diverse level of cost to make CS efforts to promote retailers' CS behavior?, (4) How much total incentive is adequate under diverse level of competition between retailers to promote retailers' CS behavior? Our findings are as following. (1) The higher reputation has the manufacturer, the higher incentives for retailers at multi-channel are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the manufacturer's reputation level(a) under some parameter conditions(b=1/2;c=0;$\beta$=1/2). (2) The bigger complimentary externalities exists between the retailers' CS efforts, the higher incentives are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the complimentary externalities level($\beta$) under some parameter conditions(a=1;b=1/2;c=0). (3) The higher is the retailers' cost, the lower incentives are required in the equilibrium.
    shows the decreasing pattern of optimal incentive level along the cost level(c) under some parameter conditions(a=1;b=1/2;$\beta$=1/2). (4) The more competitive gets those two retailers, the higher incentives for retailers at multi-channel are required in the equilibrium.
    shows the increasing pattern of optimal incentive level along the competition level(b) under some parameter conditions(c=0;a=1;$\beta$=1/2). One of the major contribution points of this study is the fact that this study is the first to investigate the optimal CS incentive system under multi-channel setting.

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