• Journal of Electrical Engineering and Technology
• /
• v.6 no.1
• /
• pp.8-13
• /
• 2011

Reliability differentiated pricing (RDP) is known to improve the efficiency and benefits of consumers and producers. Outage costs representing the economic and non-economic consequences of service curtailments to customers can be used as an effective parameter of RDP in electricity markets. This paper examines the theoretical aspects of an RDP scheme, and derives the optimal decisions of consumers and electric utilities for long-term transactions. The proposed RDP is demonstrated through a case study on a wheeling service.

• Spatial Information Research
• /
• v.20 no.3
• /
• pp.1-14
• /
• 2012

This paper has investigated the unreasonable pricing system for container cargo with special reference to inland transport since it is determined by administrative boundary without considering travelling distance. This research is primarily intended to improve the current pricing system by introducing a pricing support system about the container cargo in the country which applies GIS service area analysis to transportation data. Price simulation maps were generated to find out reasonable pricing strategy. Pricing alternative integrating travelling distance into administrative zoning brings about more desirable results than individual driving cost alone. The research can contribute to more reasonable pricing for the fuel consumption expense and serve as useful instruments for planning pricing system for container cargo. It is anticipated that this research output could be used as a valuable reference to increase the scientific and objective pricing for container cargo by overcoming serious constraints suffered from the past non-GIS-based approach.

• The Journal of Korean Institute of Communications and Information Sciences
• /
• v.32 no.11B
• /
• pp.709-717
• /
• 2007

Pricing a network service aims for congestion control of the network as well as economic efficiency. A monopolistic supplier providing users with a network service on a shared link needs a pricing schedule that maximizes revenue under the link's bandwidth constraint and guarantees the bandwidth purchased by the users. In that case, nonlinear pricing is an efficient scheme which meets both requirements. This study reviews how nonlinear pricing can be applied to the network service under the constraint and shows that the nonlinear pricing may result in a fixed unit price of bandwidth as linear pricing when demand characteristics of the users follow a power law. Also, the way how the provider with incomplete information on the demand distribution seeks for the optimal pricing from the degree of the network congestion is introduced and the relationship between the development direction of the Internet and internet pricing is considered based on the results of the study.

• Journal of Korea Port Economic Association
• /
• v.28 no.4
• /
• pp.257-274
• /
• 2012

Since service competition among global supply chains became intensified, market-oriented system, instead of the existing cost-based system, for port service pricing has been strongly recommended in order to enhance their long-term viability and competitiveness. The Owen value of cooperative game frameworks allows us to apply a market-oriented pricing theory for the port pricing in the case of Gwangyang port to verify its usefulness. The analytical results of this paper suggested some solutions in the problem of berth-based cost allocation by a characteristic function and also showed the proper relative weights of factors to derive the quay use index by Budescu(1993). We also suggested a favorable port pricing system to major shipping firms as well as a discount port pricing system for their strategic alliance. To put it differently, the results of this study enable the port managers to make out some strategic port pricing system like the reasonable discount in port charge for the larger ship owners using the ports frequently.

• Journal of Digital Convergence
• /
• v.1 no.1
• /
• pp.189-212
• /
• 2003

The quality of Internet services such as VOD and Web storage services deteriorates as the number of users increases beyond a certain point. However, most of the pricing mechanisms in research as well as those in practice do not reflect such situations (i.e., congestion). The purpose of this paper is to show that different types of pricing mechanisms are required and to model such situations using game theory. We extend Fishburn & Odlyzko(1999) model, in which the service quality is the same for the different pricing schemes, to reflect the situations where the service quality is different between the different pricing schemes due to congestion.

• Proceedings of the KIEE Conference
• /
• 1999.07c
• /
• pp.1202-1204
• /
• 1999

This paper proposes a value-based pricing suitable for deregulation situation in electricity market, where the value is measured based on the service quality such as system reliability. The proposed approach makes it possible to maximize social welfare, in that diversified service can produce the optimal combination set of demand and supply. The proposed pricing can also be applied to a direct load control.

• The Transactions of the Korean Institute of Electrical Engineers A
• /
• v.51 no.1
• /
• pp.37-44
• /
• 2002

This Paper suggests reasonable pricing mathod fur Reactive Power in Optimal Power Flow for the system analysis. Under restructuring, not only real power pricing but also reactive power pricing is important for the system analysis and operation. If people just focus on real power pricing, the Generators may no generate reactive power voluntarily, because the Generators may not recover the cost of the reactive power generation. So making a reasonable reactive power pricing is becoming more important than any other time. In this paper, the authors set a Proper Power factor and price the portion of the reactive power that exceeds the power factor using Interior Point Method. By applying this method, the System operator can use this strategy for the analysis of reactive power generation pricing and the Generator can get the motivation to generate reactive power. The author develops fully optimized fast Primal Dual Interior Point Method with sparsity technique and applies this method to Reliability Test System (RTS24) and KEPCO 674 bus system (684 buses. 1279 lines). It shows adaptability and usefulness.

• The Transactions of the Korea Information Processing Society
• /
• v.4 no.1
• /
• pp.23-38
• /
• 1997

Based on previous research for end-users information needs, this research is to investigate DB costing method for decision-making on pricing of DB service by critical factors. The first phase of the research classifies the elements of DB product cost accounting by activities of the circulation system of information in DB service. The second phase is to develop model based on results of DB product costing in the first phase of research. The third phase of research is to present the process of DB product cost accounting by applying the model to an on-line service company. Finally, the research develops the pricing decision model to determine the priority of each factor by survey from major on-line service companies in America and Japan. It is essential to research further regarding the DB product costing and pricing methods in order to determine a proper DB service charge. The right Pricing decision in the DB service charge will contribute to the growth of the DB industry.

• The Journal of Korean Institute of Communications and Information Sciences
• /
• v.34 no.3B
• /
• pp.288-303
• /
• 2009

In the near future it is foreseen that a genuine multimedia service over the WiMAX system is provided in a worldwide manner by exploiting the QoS technologies introduced in the wireless and wired broadband network. In this work we propose a pricing scheme for the multimedia service over the generic WiMAX system that supports a full QoS functionality. We assume real-time services such as the voice and video as well as the nonreal-time service such as the conventional high-speed data, and we propose a pricing and charging scheme for those services by investigating the inherent characteristics of those services and the multiple-class of QoS-service provided to them. After that we propose a method to compute expected revenue that is obtained from the WiMAX system by using an analytic method to estimate the usage of the bandwidth resources for the different class of services. Via numerical experiment, we verify the implication of the work.

• Journal of Korean Institute of Industrial Engineers
• /
• v.28 no.3
• /
• pp.291-301
• /
• 2002

In this paper, we introduce a mathematical model to analyze pricing/quality and service mix strategies for Internet Portal site. This model includes utilities and costs of each participants, i.e., user, third party provider, and portal sites. Especially, we consider portal sites that initiate their businesses by providing free services like free e-mail service or search service and providing several charged services. As the results, we can find that Portal sites should make the target of customers and focus them to maximize their profit. Portal sites should pay their marketing effort not for all customers but pertinent portions of customers. And Portal sites should make more efforts to efficiently develop and provision their services.