• ETRI Journal
• /
• v.30 no.4
• /
• pp.587-596
• /
• 2008

Facility-based competition (FBC) in the telecommunications market is considered to have lower static efficiency in the short term and higher dynamic efficiency in the long term. Under service-based competition (SBC), the entrant can reduce its setup costs by leasing network facilities from the incumbent, which makes the entrant viable, pushes the market price down and promotes static efficiency. This paper attempts to measure static efficiency by comparing the profits of the incumbent and entrant in terms of consumer surplus and social welfare under each competition type by extending the Stackelberg model. The results, assuming a linear demand function and variation in regulatory level, show that FBC results in higher social welfare than SBC on the whole. However, SBC accompanied by strong regulation is also shown to have the potential to be superior over FBC. It is also revealed that FBC exhibits a higher producer surplus (particularly, the incumbent's producer surplus) and is, therefore, more desirable in terms of dynamic efficiency. When the entrant's cost is high in FBC, social welfare is shown to be lowered, implying that cost competitiveness is a necessary condition for social welfare.

• Journal of Communications and Networks
• /
• v.13 no.5
• /
• pp.499-510
• /
• 2011

Any server offering a routing service in the Internet would naturally be in competition for clients, and clients may need to utilize service from a specific server in order to achieve a desired result. We study the various properties of this competition, such as the fraction of route requests handled by a routing service provider and the fraction of total revenue obtained. As the routing service providers (i.e., servers or routers in this context) compete, they may alter behavior in order to optimize one of the above properties. For example, a service provider may lower the price charged for its service, in order to increase the number of clients served. Our models are based on servers offering a routing service to clients within representative network topologies based on actual Internet sub-graphs. These models provide, a framework for evaluating competition in the Internet. We monitor key aspects of the service, as several variables are introduced into the models. The first variable is the fraction of client requests that will pay more for a better quality route. The remaining requests are normal client requests that are satisfied by the most economical route. The second variable is the fraction of servers who choose to lower service prices in order to maximize the number of client requests served. As this fraction increases, it is more likely that a server will lower the price. Finally, there are some resource constraints applied to the model, to increase the difficulty in providing a routing solution, i.e., to simulate a realistic scenario. We seek to understand the effect on the overall network, as service providers compete. In simple cases, we show that this competition could have a negative impact on the overall efficiency of a service. We show that the routing variety present in the larger models is unable to mask this tendency and the routing service performance is decreased due to competition.

• Health Policy and Management
• /
• v.18 no.1
• /
• pp.1-20
• /
• 2008

How health care providers compete and how competition among them affects their behavior are crucial questions in theory and health policy. In ordinary markets, competition improves social welfare, However in health care markets facing uncertainty and information asymmetry, competition can take the form of wasteful quality competition and result in cost increase. The purpose of this study is to examine the characteristics of hospital service markets and examine the impact of hospital competition on hospital behavior, more specifically hospital cost and the size of personnel. Based on patient discharge data of 2002 by the Ministry of Health and Welfare and Korea Institute for Health and Social Affairs, and health insurance EDI claims data of 2002, this study measures the degree of competition in the inpatient service market of hospitals, using variable radius method and Herfindahl index. The result of the study shows that the hospital service market consists of on average 3.13 government administrative units(shi, gun, or gu). Compared with hospitals, general or general specialized hospitals cover larger markets and operate in more competitive markets. Nearly 60% of patients use hospitals, which are not located in their government administrative units, meaning that market definition based on variable radius is better than the conventional method of market definition based on government administrative units. The results of multivariate analysis show that competition is not associated with high cost index of hospitals. But hospitals in more competitive markets employ larger(more intensive) input of personnel per 100 beds, implying that hospital competition in Korea can have the form of quality and cost-increasing competition.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.36 no.4
• /
• pp.81-89
• /
• 2011

In recent business environments, the competition among firms is shifting from the competition based on individual firm only to the competition based on alliance of firms. This is because it is not easy for a firm to perform all functions which consumers want. Thus, it is more effective to combine core competencies of different firms based on a strategic partnership. It is essential to establish a strategic partnership and this strategic partnership is a key success factor in PSS(Product-Service System) which combines products and services. In this paper, we propose a profit sharing model for PSS partnership. We first analyze customer's utility using Cobb-Douglas utility function and then propose the PSS profit sharing ratio considering functionalities and cost structures based on the combination ratio of PSS. This paper helps firms to develop partnership strategies for PSS.

• Korean Management Science Review
• /
• v.26 no.3
• /
• pp.67-78
• /
• 2009

In this paper, I analyze the mobile broadband services market characterized by vertical and horizontal differentiation. Vertical differentiation as service quality differentiation is based on the transmission speed of mobile internet service and horizontal differentiation as spatial differentiation is based on the service coverage. Theoretical explanations for the competitive price policy have been developed in the game context of WiBro which represent the high quality within the limited service coverage and HSDPA which represent relatively low quality with nation-wide service. When the WiBro has a mobile broadband service quality advantage and the difference in quality is sufficiently low, the price of WiBro with limited service coverage is relatively lower than that of HSDPA. This occurs because the advantage of WiBro's vertical service differentiation is offset by the disadvantage of horizontal differentiation. The difference in the quality of mobile internet service, however, is not too high, the price of WiBro is relatively higher than that of HSDPA. Moreover, when the service quality of WiBro is sufficiently high, the low quality HSDPA service faces no demand.

• Journal of Korean Society for Quality Management
• /
• v.28 no.3
• /
• pp.31-43
• /
• 2000

The Service sector has increased dramatically in importance over the last decade, both internationally and in the Korea. Deregulation of services, growing competition, fluctuations in high quality demand, and the application of the Information Technologies are presenting a considerable challenge to service companies. In gas or oil companies are exposed to foreign competitions, price and promotion competition with other companies. Usually Service Quality includes five dimensions: Reliability, Responsiveness, Assurance, Empathy, and Tangibles. Customers use these five dimensions to form their judgements of service quality, which are based on a comparison between expected and perceived service. The intention of this thesis is to study on the effect of Service Quality upon the Customer Satisfaction in gas or oil station, based on SERVQUAL.

• ETRI Journal
• /
• v.26 no.6
• /
• pp.665-668
• /
• 2004

The introduction of a mobile virtual network operator (MVNO) system is expected to increase consumer benefits, boost competition in the mobile market, utilize idle bandwidth, and expedite mobile-fixed line convergence and growth in the mobile Internet market. This research endeavors to study the optimal access charge for an MVNO system, which is expected to be introduced to the Korean mobile communications market. We found that the optimal access charge is higher in the interdependent model than in the independent model if demand for mobile phone service is based on a substitution relationship. We also found that the optimal access charge is higher than the marginal cost.

• The Journal of the Korea Contents Association
• /
• v.19 no.4
• /
• pp.79-90
• /
• 2019

As an increasing number of cloud service providers begin to provide cloud computing services, they form a competitive market to compete for users. Due to different resource configurations and service workloads, users may observe different response times for their service requests and experience different levels of service quality. To compete for cloud users, it is crucial for each cloud service provider to determine an optimal price that best corresponds to their service qualities while also guaranteeing maximum profit. To achieve this goal, the underlying rationale and characteristics in this competitive market must be clarified. In this paper, we analyze price competition in the multimedia cloud service market with two service providers. We characterize the nature of non-cooperative games in a duopoly multimedia cloud service market with the goal of capturing how each cloud service provider determines its optimal price to compete with the other and maximize its own profit. To do this, we introduce a queueing model to characterize the service process in a multimedia cloud data center. Based on performance measures of the proposed queueing model, we suggest a price competition problem in a duopoly multimedia cloud service market. By solving this problem, we can obtain the optimal equilibrium prices.

• Journal of The Korean Association For Science Education
• /
• v.36 no.5
• /
• pp.801-814
• /
• 2016

The purpose of this study is to find out whether pre-service biology teachers' biological meanings of competition and adaptation is the same as everyday meanings to understand natural selection and evolution. Fifty three pre-service biology teachers answered written tests and thirteen of them were interviewed. The tests on general meanings on competition and adaptation, tests on biological meanings on competition and adaptation and tests on natural selection were administered. Questions on semi-structured interviews were composed of only biological meanings about competition and adaptation. Analyzing data through four steps, pre-service biological teachers' general meanings on competition and adaptation were compared with the definitions of Korean dictionary and compared with biological definitions. Pre-service teachers' alternative conceptions about biological competition and adaptation were classified and the alternative conceptual types were checked when explaining natural selection and evolution. They realized competition is battle for intention or purpose like everyday meaning of competition. However, they didn't realize adaptation happen in the population level. They thought that adaptation, like in everyday life meaning, is getting suitable to environment for survival on an individual level. By relating adaptation to evolution, they thought that long-lasting adaptation become evolution. This study has significance with respect to suggesting the alternative concepts of competition and adaptation based on effective evolution teaching from constructivism viewpoint and highlighting the importance of the concepts of biological competition and adaptation, which have been concerned rarely for a long time.

• IE interfaces
• /
• v.25 no.1
• /
• pp.142-152
• /
• 2012

Recently, the postal service encounters the various changes in the overall mail environment including the reduction of letter volume, keen competition of the private parcel service and EMS, diversification of customers' demand and etc. In this environment, Korea Post is considering new concept of postal service in order to provide the mail service based on informatization and automation to a client and secures the predominance in competition. We analyze the current environment of postal service for applying the gCRM (Geographic Customer Relationship Management). We propose some possible application fields and present an efficient phased application plan for each field.