• Journal of Applied Tourism Food and Beverage Management and Research
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• v.16 no.2
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• pp.135-151
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• 2005

In accordance with changes in life style, people's desire to eat out is getting changed in their preferring factors from whether they can buy food they want to eat fast and easily to mood of the dining space, content and quality of service, hygiene condition of restaurant, quiet location and surrounding circumstance, and discount coupon and price destruction. In addition, consumers who begin to recognize the seriousness of environmental pollution prefer health-oriented food. On the other hand, excessive presence of competitors, growing personnel expense, increasing expenditure in accordance with swelling price of rent and material expenditure, increase of tax burden, decrease of income because of credit card service charge and high expected level by consumers make it difficult for restaurant's owners to manage restaurant business. Therefore, this study purposes to establish development of menu from the consumer's and the supplier's point of view and propose how to develop menu aiming at convenience, health and diversity.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.56 no.5
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• pp.848-853
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• 2007

This paper presents a methodology of estimating incomplete information in electricity markets for analyzing the gaming behavior of Generating Companies (GENCOs). Each GENCO needs to model its opponents' unknown information of strategic biddings and cost functions. In electricity markets with complete information, each GENCO knows its rivals' payoff functions and tries to maximize its own profit at Nash equilibriurnl Nli) by acknowledging the rivals' cost function. On the other hand, in the incomplete information markets, each GENCO lacks information about its rivals. Load patterns can change continuously due to many factors such as weather, price, contingency, etc. In this paper, we propose the method of the estimation of the opponents' cost function using market price, transaction quantities. and customer load patterns. A numerical example with two GENCOs is illustrated to show the basic idea and effectiveness of the proposed methodology.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.66 no.8
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• pp.1181-1186
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• 2017

The purpose of Demand Response is to reduce the cost of excessive resources and equipment by spontaneous load reductions at peak loads. Having enough power consumers participating in these schemes is key to achieving the goal. Demand Response Aggregator (DRA) is responsible for recruiting demand resources and managing them to participate in reducing the load. DRAs change the price elasticity of demand functions by providing incentives to demand response, thereby affecting price formation in the electricity market. In this paper, this process is modeled to analyze the relationship between DRA's strategic bidding and market outcomes and load reductions. It analyzes the results by applying to competition between DRAs, competition between DR and Gencos, and coexistence of DR load and non-DR load. It is noteworthy that we have found a phenomenon called the Balloon Effect.

• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.3
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• pp.115-133
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• 2002

In this paper, 15 South Korean telecommunications service failure cases were analyzed. Through the in-depth case study, 8 factors were found to be the major causes contributing to the telecommunications service failure. They were (1) ineffective marketing, (2) poor demand forecasting due to misjudgment of customer preference, (3) failure to satisfy technical specifications, (4) loss of cost advantage due to the price cut of competing services or new entry with lower price, (5) loss of utility advantage due to the increased utility of competing services or new entry with higher utility (6) decrease of market attractiveness due to change of customer preference, (7) impact of government policy, and (8) insufficient or low quality of contents. Additional analysis was done to derive managerial implications to the new telecommunications service development strategy. The findings from the paper will provide valuable Insight to the successful Implementation of new service development and service provisioning processes.

• Journal of the Korean Operations Research and Management Science Society
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• v.33 no.1
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• pp.19-33
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• 2008

In the previous double auction research for the market optimization, two basic assumptions are usually applied - (1) each trader has a linear or quasi-linear utility function of price and quantity, and (2) buyers as well as sellers have identical utility functions. However, in practice, each buyer and seller in a double auction market may have diverse utility functions for trading goods. Therefore, a flexible and integrated double auction mechanism that can integrate all traders' diverse utility functions is necessary. In particular, the flexible mechanism is more useful in a synchronous double auction because traders can properly change utilities in each round. Therefore, in this paper, we propose a flexible synchronous double auction mechanism in which traders can express diverse utility functions for the price and quantity of the goods, and optimal total market utility is guaranteed. In order to optimize the total market utility which consists of multiple complex utility functions of traders. We show the viability of the proposed mechanism through a several simulation experiments.

• KDI Journal of Economic Policy
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• v.39 no.1
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• pp.83-102
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• 2017

Price control can restore efficiency in some cases, but an uncarefully designed policy fails to restore efficiency, yields side effects, or even exacerbates efficiency losses. This paper shows that the copyright royalty rule, which takes the greater of ad valorem royalties and perunit royalties, tends to fix the prices of final goods at a specific level. Such a rule weakens competition as it prevents prices from decreasing even when market conditions change, having negative effects on social welfare as well as consumer surplus. Counterfactual analyses using estimation results in the Korean online music service industry show that firms could have profitably reduced prices if the ad valorem rule had been applied instead, although they did not have an incentive to do so under the original combination rule.

• Korean Journal of Organic Agriculture
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• v.9 no.4
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• pp.1-27
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• 2001

The number of organic farms are increasing in European countries during last 10 years. Most European governments are giving subsidies for organic farmers as well as converting organic farms from conventional farming method. The price level of most organic products are higher than price level of conventional products in general. However, there are certainly some market demand problems in organic products in some countries. Organic farms will be increased in 2005 and 2010 for 10∼20% of the total agricultural area in some European countries. Government subsidy payment is also increasing. Therefore, many farmers are going to change into organic farming method from conventional farming. However, there will be certainly some market demand problems in future because of national economic growth problems. At the same time, the quality of soil can be improved and status of health of urban consumers should be improved by consuming organic products.

• Journal of the Korean Society for Geothermal and Hydrothermal Energy
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• v.7 no.2
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• pp.1-9
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• 2011

Geothermal heat pumps are known as the most efficient and environment-friendly heating and cooling system, and are also gaining acceptance in buildings. Building energy simulation program, EnergyPlus is used to calculate the energy consumption of residential buildings. This simulated energy consumption is essential for accurate economic analysis. Residential buildings with geothermal heat pumps have complex energy price structure. Electricity rates for residential buildings increase rapidly as the monthly use increases. This complex energy price structure makes the economic analysis complicated. The purpose of this study is to conduct economic comparison of residential geothermal heat pumps and provide a feasible approach in finding their economically feasible capacity.

• Proceedings of the KIEE Conference
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• 2001.07a
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• pp.524-526
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• 2001

The variations of real time electric price in competitive electricity markets have influence on electric power demands of the consumers. Residential, commercial, and industrial consumers, with different characteristics cause the different price elasticity of the demand due to changing the pattern of consumption. Therefore, this paper calculate the elasticity of each loads and analysis the effects of electric power demands and spot pricing as a function of elasticity in competitive electricity market.

• Journal of the military operations research society of Korea
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• v.14 no.1
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• pp.63-83
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• 1988

This study is concerned with the equilibrium bidding strategy and the optimal auction design of sequential auction with a reserve price and an entry fee. It is assumed that each bidder has a fixed reservation value and draws the reservation values of other bidders independently in the same distribution and may obtain at most one object to be sold. Under such assumptions, the sequential auction will be analyzed by the game theoretic approach. The purpose of this paper is, in the sequential auction, to find the equilibrium bidding strategy and to design the optimal auction under the equilibrium bidding strategy. The equilibrium bidding strategy and the optimal auction design are further analyzed with respect to change of the reserve price, the entry fee, and the number of bidders and objects. Specially, the auctioneer's expected revenue for each auction is obtained and analyzed.