• Asia pacific journal of information systems
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• v.15 no.2
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• pp.121-148
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• 2005

This study focuses on MRO e-Marketplace and attempts to research how companies select the structure of e-Marketplace governance and how it influences purchasing performance. Furthermore, a longitudinal study is conducted to analyze the dynamic relationship between variables in our research model. The research gives the following results. First, as the utilization level of e-Marketplace increases, the level of relational exchange between purchasing company and e-Marketplace increases. The increased utilization level enhances purchasing efficiency rather than reducing purchasing price. Secondly, as the level of relational exchange between purchasing companies and e-Marketplace increases, system integration increases, whereas supply externality decreases. Accordingly, system integration improves purchasing efficiency, whereas the low supply externality does not help lower purchasing price. Third, compared to the initial growth stage, the stable stage of e-Marketplace has the significantly increased level of relational exchange and purchasing efficiency through system integration, rather than the reduction of purchasing price by supply externality.

• KCID journal
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• v.17 no.2
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• pp.3-16
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• 2010

The subject of externality of agricultural water supply has been discussed in the OECD AC ( Organization for Economic Cooperation and Development Agriculture Committee) while argued between monsoon Asian developing countries and the agricultural product export nations (Australia, EU, etc). It argued that a 'positive' approach to multifunctionality views agriculture as an economic activity with multiple, interconnected outputs or effects, and a 'normative' approach interprets multifunctionality in terms of the multiple roles assigned to agriculture. and the agricultural product export nations insisted 'negative' approach to externality of agricultural water supply like causing water pollution. So, in this study, define the externalities (positive, negative and economic, environmental) in terms of the agricultural water supply and calculate benefit and cost each the externalities by cost estimation. As results, BC is calculated to 1.28 which means that it is more economical to agricultural water supply and shows that although the negative exernalities comes out while supply the agricultural water, it still more valuable to supply the agricultural water.

• Journal of Electrical Engineering and Technology
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• v.5 no.1
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• pp.1-7
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• 2010

Recently, smart grid has been considered a very important new energy delivery technology, and one that can help ensure a cleaner environment by making use of information and communication technology (ICT) in countries around the world. The many technological benefits smart grid offers is expected to bring about a huge change in the electric energy supply chain. In particular, smart grid with advanced ICT is likely to allow market agents to participate in the decision-making process in the restructured electricity industry, easily facilitating Homeostatic Utility Control. In this paper, we examine smart grid as a market externality, and then illustrate issues from the commercial market perspective as it relates to electricity market design. Finally, our paper identifies some of the impacts of smart grid on electricity market design, which may possibly be incorporated into the evolution of the electricity market, thus ensuring market efficiency.

• The Journal of Information Systems
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• v.24 no.4
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• pp.21-42
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• 2015

Purpose The high-technology market shows characteristics of a highly interdependent network market in both supply-side and demand-side, compared to other markets. Particularly, for convergence products, connectivity with related elements, as well as characteristics of innovation itself, is relatively important to the extent that they combine functions provided by several devices into a single device. Therefore, this study aims to identify whether network externality exists in value and adoption of a convergence product and discover a source of network externality, if any. Design/methodology/approach: Through a preceding research analysis and a literature review, 'social influence' and 'network size' have been drawn as direct network elements. On the other hand, general (comprehensive) concept compatibilities including 'intra-technology compatibility', 'inter-technology compatibility' and 'complementary-technology compatibility' are regarded as indirect network elements. Findings: Major findings are as followed;- First, it is shown that the factors influencing on perceived value of a convergence products are 'social influence' and 'network size' as the direct network elements and 'complementary-compatibility' among indirect network elements. Second, it is also found that 'intra-technology compatibility', 'inter-technology compatibility', 'complementary-compatibility' and 'perceived value' have significant effects on adoption of a convergence product. Particularly, it is known that 'complementary-compatibility' is an important source of network externality as it plays a decisive role in value judgment and has significant effects on perceived value. It is worthwhile to notice that this study comprehensively explains effects of network on high-tech products by structuring comparability as a multi-dimensional concept, as well as direct network elements.

• Asia pacific journal of information systems
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• v.13 no.3
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• pp.173-193
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• 2003

As the interest in the business-to-business(B2B) electronic commerce is increasing, some companies are participating in the B2B eMarketplaces(electronic marketplaces). The eMarketplace has an effect on the method of B2B transactions or the purchasing performance. The academy and the industry are focused on the cause and the result of this effect. The purpose of this research is to analyze the effects of the relational exchange with eMarketplace on the purchasing performance, considering the supply externality and system integration as intervening variables. This study investigates the second-order effect of eMarketplace in which the degree of improvements in two aspects of purchasing activity(price reduction, purchasing efficiency) depends on the degree of the relational exchange with eMarketplace, namely, the governance of eMarketplace. Our hypotheses on this second order effect were supported. We found that the higher the relational governance, the lower in price reduction, and the better in purchasing efficiency. In more details, the high relational governance lowers the supply externality, and in turn deteriorates the improvement in price reduction. Meanwhile, the high relational governance accelerates the information system integration, and brings the better purchasing efficiency. Our findings suggest that organizations can improve their purchasing activities better if they choose the appropriate eMarketplace governance.

• Environmental and Resource Economics Review
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• v.23 no.2
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• pp.225-248
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• 2014

The purpose of this study is to estimate the optimal tax rate for gasoline in Korea, by utilizing both the parameters for the estimation of the optimal fuel taxes and the theoretical model considering externalities proposed by Parry and Small (2005). The result of simulation shows that the optimum fuel taxes in Korea is calculated in 382 korean won per liter, which is lower than fuel tax rate(529 korean won per liter) currently being imposed. The fuel tax is composed of two types of tax. First is Pigouvian tax caused by negative externality such as traffic congestion and accidents etc. And second is Ramsey tax for optimal commodity sales taxes. We find that Pigouvian tax in Korea is higher than one of U.S. and U.K and Ramsey tax is very small due to the inelastic labor supply comparing to consumption elasticity of fuel. When adjusting the elasticity of labor supply to the UK level, the optimal fuel tax in Korea is very close to the current level of 480 korean won per liter. This paper contributes to suggest the reasonable estimation and discussion in the social optimum fuel tax rates by utilizing the theory and simulation and improve the possibility of the derivation of optimum fuel taxes through both securing the exact parameters and modifying the theoretical model suitable for Korea.

• Journal of Technology Innovation
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• v.13 no.1
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• pp.113-139
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• 2005

The purpose of this study is to analyse the diffusion process of personal computer (PC) in Korea during the 1990's. To achieve the goal, five research steps have been done such as the literature survey of diffusion theory, set-up of theoretic equilibrium model of supply and demand, derivation of an equilibrium path using Hamiltonian, and empirical analysis. The empirical analysis has been performed based on that equilibrium path. The results can be summarized as follows : First, technological attribute of diffusing product influences the diffusion speed of Product. It has been proven that the size of the network has a significant effect on the diffusion of PC in empirical study Second, supply factors have an important role in the diffusion process. According to the empirical analysis, decreasing cost of production as a result of technological advance promotes the speed of diffusion. This point seems to be manifest theoretically, but existing empirical models have not included supply factors explicitly, Third, it has been found out that expectation of decreasing cost would influence the speed of diffusion negatively as expected ex ante. Theoretically this result is supported by arbitrage condition of purchasing timing.

• Journal of the Korean Operations Research and Management Science Society
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• v.38 no.3
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• pp.51-70
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• 2013

This paper develops a model to predict the adoption and level of usage of network technology in a two-level supply chain with buyer-supplier relationships. A firm's adoption of a new technology depends not only on its own beliefs of the new technology's costs and benefits, but also on the adoption decisions of other firms in the supply chain. A model first analyzes an individual supplier's decision about a new technology adoption considering with multiple suppliers and buyers. Individual suppliers' decisions are aggregated with a population model to project how new technology diffuses across the supply chain and examine the pattern of diffusion process. This study found that as more firms adopt in initial periods, the total amount of information to the potential adopters in the population increases, and then the number of firms persuaded by the information increases as the process moves up the distribution of adoption process. We consider three factors influencing the diffusion speed of the new technology in a supply chain network : mean benefits, cost sharing, and information provision. This study examines how such factors affect the reduction of threshold levels, which implies that reductions in threshold levels have an aggregate effect by accelerating the rate of adoption. In particular, we explore relationship factors available in practice in a buyer-supplier relationship and numerically examines how these relationship factors contribute to increase the diffusion speed of the technology in a two-level supply chain.

• Journal of Korea Spatial Information System Society
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• v.3 no.1 s.5
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• pp.109-116
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• 2001

ITS industry has general characteristics of Information Economy such as network externality and information duplex. It also has characteristics exclusive to ITS including timing and locality of information, spontaneous monopolist ability, public use, and system integration. Due to its characteristics ITS industry demands different business strategies and industrial policies from past economy. Reflecting on network externality, it would be more effective to open and mutually share or build a strategic coalition among the competitors and share the market, standardization at early stage is necessary for the market maturation. Reflecting its coexistent characteristics of spontaneous monopolistic ability, public use and profitability in ITS industry it is desirable to make determination on supply source and financial funding source for each system after reviewing public usage and profitability. ITS industry characteristics in Information Economy and the effects of these characteristics on business strategy and industrial policy are analyzed in this research.

• Journal of Korea Technology Innovation Society
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• v.4 no.3
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• pp.355-368
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• 2001

The importance of software industry is rapidly increasing with the growth of Internet and the advent of digital economy. The purpose of this study is to research the impact of the copyright protection for securing producers and enhancing of producing on social welfare. The Korean government reformed the copyright law to enhance the copyright protection in 2000 and intensely controlled software piracy in 2001. However, copyright protection has much controversy in aspects of hindering social use of software. This study compared and analyzed the general equilibrium and the copyright protection for social welfare maximization in two cases when network externality exists or not, by assuming the simple demand and supply functions.