• The Journal of Asian Finance, Economics and Business
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• v.6 no.4
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• pp.179-187
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• 2019

This study aims to investigate the effects of market commonality and resource similarity on price competition and the recursive consequences in the Korean lodging market. Price comparison among hotels in the same geographic market has been facilitated through the development of information technology, rendering little search cost of consumers. While the literature implies the heterogeneous price attack and response among hotels, a limited number of empirical researches focus on the asymmetric and recursive pattern in the competitive dynamics. This study empirically examines the price interactions in the Korean lodging market based on the theoretical framework of competitive price interactions and countervailing power. Demonstrating superiority to the spatial lag model and the ordinary least squares in the estimation, the results from spatial error model suggest that the hotels with longer operational history pose an asymmetric impact on the price of the newer hotels. The asymmetry is also found in chain hotels over the independent, further implying the possibility of predatory pricing. The findings of this study provide the evidence of a hierarchical structure in the price competition, with different countervailing power by the resources of the hotels. Theoretical and managerial implications are discussed, with suggestions for future study.

• Journal of Korea Technology Innovation Society
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• v.6 no.2
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• pp.213-227
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• 2003

초고속 인터넷 서비스는 사용자수의 증가와 더불어 고객의 다양한 욕구 즉 인터넷 방송, 주문형비디오(VOD)서비스, 원격교육, 고화질 TV 등 대용량의 멀티미디어 서비스에 대한 욕구가 폭발적으로 증가하고 있다. 이러한 욕구를 충족하기 위해서는 현재의 초고속 인터넷서비스로서는 속도에 대한 한계에 부딪치게 되어 통신사업자들은 새로운 기술 또는 여러 가지 기술적 대안들을 추구하고 있다. 2002년부터 시작하여 2003년 이후에는 멀티미디어 수요의 증가에 따라 ADSL을 대체하는 기술로 VDSL이 등장하여 매년 꾸준한 신규가입자 수요가 발생하고 있으나, 통신사업자들은 각각의 망 특성, 시장위치, 전략적 필요성 둥에 의해 상용화를 적극 검토,추진하고 있으나 각각 전개하는 방식은 조금씩 다르다. 따라서 본 연구에서는 통신사업자들의 가입자망 진화 전략에 대해 살펴 본 다음 Lot3n-Volterra Competition (LVC) 모델을 이용 ADSL 과 VDSL 두 기술간의 상호 경쟁 및 대체를 통해 어떻게 진화 되어가는지를 살펴보았다. 대표적인 통신사업자인 KT는 막강한 자금력을 바탕으로 시장 확대 및 경쟁사와의 차별화를 위해 VDSL 서비스 조기도입을 서두르고 있고, 하나로는 자금의 열세로 인한 ADSL 투자비를 회수 할때까지 VDSL 서비스를 연기하고 있는 실정이다. ADSL과 VDSL 두 기술의 관계는 Lotka-Volterra Competition (LVC) 모델을 이용한 시뮬레이션 결과를 통해 빠른 속도와 비슷한 가격대의 VDSL이 침략자(predator)로 기존 시장 지배자인 ADSL을 사냥감(prey)으로 빠른 속도로 대체해 나가는 것을 알 수 있었다.

• Journal of the Korea Society of Computer and Information
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• v.28 no.3
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• pp.17-24
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• 2023

Based on the problem of 'Tatanic - Machine Learning from Disaster', a representative competition of Kaggle that presents challenges related to data science and solves them, we want to see how data preprocessing and model construction affect prediction accuracy and score. We compare and analyze the features by selecting seven top-ranked solutions with high scores, except when using redundant models or ensemble techniques. It was confirmed that most of the pretreatment has unique and differentiated characteristics, and although the pretreatment process was almost the same, there were differences in scores depending on the type of model. The comparative analysis study in this paper is expected to help participants in the kaggle competition and data science beginners by understanding the characteristics and analysis flow of the preprocessing methods of the top score participants.

• Journal of Technology Innovation
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• v.22 no.1
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• pp.119-147
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• 2014

Technology competition is becoming a core element to get a competitive advantage in the market economy and its importance has been growing rapidly. Therefore, lots of studies on technology competition have been conducted and diversified. We focused on 'Sailing ship effect' which accelerates innovation in the old technology in response to the threat of the new technology. We found that previous studies had suggested the factors causing 'Sailing ship effect' from the viewpoint of either market or competitor. However, there are a lot of limitations to analyse the status and establish strategies. Hence, we hereby suggest a new technology competition analysis model considering market, technology and especially competitors at once by classifying the results of technology competition: 1) Replacement, 2) Status Quo, 3) Co-existence, and 4) Sailing ship effect. In this paper, we apply three cases to the suggested model in order to judge whether it is reasonable or not and confirm that it explains many cases related to 'exit delay' of a dominant technology. We expect this study will contribute to forecasting the results of technology competition and establish a response strategy if it enters into general use.

• Asia Marketing Journal
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• v.16 no.1
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• pp.35-69
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• 2014

The impact of competition on pricing has been studied in the context of counterfactual merger analyses where expected optimal prices in a hypothetical monopoly are compared with observed prices in an oligopolistic market. Such analyses would typically assume static decision making by consumers and firms and thus have been applied mostly to data obtained from consumer packed goods such as cereal and soft drinks. However such static modeling approach is not suitable when decision makers are forward looking. When it comes to the markets for durable products with indirect network effects, consumer purchase decisions and firm pricing decisions are inherently dynamic as they take into account future states when making purchase and pricing decisions. Researchers need to take into account the dynamic aspects of decision making both in the consumer side and in the supplier side for such markets. Firms in a two-sided market typically subsidize one side of the market to exploit the indirect network effect. Such pricing behaviors would be more prevalent in competitive markets where firms would try to win over the battle for standard. While such qualitative expectation on the relationship between pricing behaviors and competitive structures could be easily formed, little empirical studies have measured the extent to which the distinct pricing structure in two-sided markets depends on the competitive structure of the market. This paper develops an empirical model to measure the impact of competition on optimal pricing of durable products under indirect network effects. In order to measure the impact of exogenously determined competition among firms on pricing, we compare the equilibrium prices in the observed oligopoly market to those in a hypothetical monopoly market. In computing the equilibrium prices, we account for the forward looking behaviors of consumers and supplier. We first estimate a demand function that accounts for consumers' forward-looking behaviors and indirect network effects. And then, for the supply side, the pricing equation is obtained as an outcome of the Markov Perfect Nash Equilibrium in pricing. In doing so, we utilize numerical dynamic programming techniques. We apply our model to a data set obtained from the U.S. video game console market. The video game console market is considered a prototypical case of two-sided markets in which the platform typically subsidizes one side of market to expand the installed base anticipating larger revenues in the other side of market resulting from the expanded installed base. The data consist of monthly observations of price, hardware unit sales and the number of compatible software titles for Sony PlayStation and Nintendo 64 from September 1996 to August 2002. Sony PlayStation was released to the market a year before Nintendo 64 was launched. We compute the expected equilibrium price path for Nintendo 64 and Playstation for both oligopoly and for monopoly. Our analysis reveals that the price level differs significantly between two competition structures. The merged monopoly is expected to set prices higher by 14.8% for Sony PlayStation and 21.8% for Nintendo 64 on average than the independent firms in an oligopoly would do. And such removal of competition would result in a reduction in consumer value by 43.1%. Higher prices are expected for the hypothetical monopoly because the merged firm does not need to engage in the battle for industry standard. This result is attributed to the distinct property of a two-sided market that competing firms tend to set low prices particularly at the initial period to attract consumers at the introductory stage and to reinforce their own networks and eventually finally to dominate the market.

• Journal of Korean Society of Forest Science
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• v.90 no.3
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• pp.295-305
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• 2001

This study was conducted to reveal stand structure and competition status by site types of natural deciduous forest in Pyungchang, Kangwon-do. The study site was divided by nine different types based on elevation(higher than 1,000m, 700~1,000m. lower than 700m) and topography(ridge, slope, valley). The objective of this study is to provide a basic information necessary for the environment-friendly management methods of natural deciduous forest on the basis of the stand structure and competition status by site types. It is confirmed that the range from 700m to 1,000m in elevation was the most suitable for stand growth. Species diversity and richness index also tended to be increased as elevation decreased. The ridge was the best in terms of stand growth by topography and followed by slope and valley in order. In addition, as expected, species with high importance value showed relatively low evenness index. The distance-independent competition index was selected as the best competition index model in seven site types of natural deciduous forest. On the other hand, the distance-dependent competition index was highly correlated with periodic annual increment of diameter in both ridge at higher than 1,000m and valley of 700m to 1,000m in elevation. It is proved, as a result, that the best competition index model is somewhat different by site types. From the analysis growth characteristics and competition status by site types, it is identified that the species with high importance value performed well in both growth and competition. The growth of Q. mongolica was excellent in the areas of higher elevation than 700m. Although K. pilus had relatively low importance value in higher elevation than 1,000m and ridge of 700m to 1,000m, the species had stronger competition status rather than other species. Also, U. davidiana and M. amurensis were good in competition status at lower elevation than 1,000m. It is necessary, therefore, that appropriate tending practice should be adopted based on the growth pattern and competition status of each species distributed by site types.

• Asia-Pacific Journal of Business
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• v.9 no.4
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• pp.49-65
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• 2018

This paper illustrates the competition between the mobile pay and credit card systems by utilizing the theory of two-sided markets. Two firms, as platforms, maximize the profit collecting fees from consumers on one side and from retailers on the other side. Consumers pay to buy goods and services with mobile pay, credit card, or cash. The basic model is one that each platform maximizes its profit. We show that the fees for credit card holders and retailers are higher than the respective costs. The fee for retailers of the mobile payment is higher than its cost, while the buyer's fee may be higher or lower than its cost. Applied model is the one that employs the delegation game model. The total profit of the mobile pay system is composed of its profit and the weighted demand for the mobile pay. It is shown that buyers' fee under the applied model is lower than that under the basic model, resulting in an increase of the demand for the mobile pay. The fee for the retailers rises, albeit the sum of fees for the buyers and retailers falls. The profit for the mobile pay system is increased, while that for the credit card company stays the same.

• Journal of Microbiology and Biotechnology
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• v.17 no.1
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• pp.146-153
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• 2007

A mathematical competition model between normal flora and an invading pathogen was devised to allow analysis of bacterial infections in a host. The normal flora includes the various microorganisms that live on or within the host and act as a primary human immune system. Despite the important role of the normal flora, no mathematical study has been undertaken on models of the interaction between it and invading pathogens against a background of antibiotic treatment. To quantify key elements of bacterial behavior in a host, pairs of nonlinear differential equations were used to describe three categories of human health conditions, namely, healthy, latent infection, and active infection. In addition, a cutoff value was proposed to represent the minimum population level required for survival. The recovery of normal flora after antibiotic treatment was also included in the simulation because of its relation to human health recovery. The significance of each simulation parameter for the bacterial growth model was investigated. The devised simulation showed that bacterial proliferation rate, carrying capacity, initial population levels, and competition intensity have a significant effect on bacterial behavior. Consequently, a model was established to describe competition between normal flora and an infiltrating pathogen. Unlike other population models, the recovery process described by the devised model can describe the human health recovery mechanism.

• Korea Trade Review
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• v.48 no.3
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• pp.151-176
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• 2023

This paper critically examines the role performance of local distributors within the Stimulus-Organism-Response (SOR) model, while also considering the moderating influence of market competition on the organism (O) and response (R) elements. Adopting a holistic approach, the SOR model provides a comprehensive framework for analyzing how external stimuli, including distributive, procedural, and interaction unfairness, interact with internal psychological processes, such as perceived unfairness, to shape the long-term orientation of importing agents. Moreover, this study acknowledges the pivotal role of market competition in the operational context of local distributors. It posits that competitive market dynamics play a crucial role in intensifying the relationship between behavioral factors and the long-term orientation of distributors, thereby revealing contingent effects within the SOR model. Through the exploration of these dynamics, this study contributes to a comprehensive understanding of the interplay among external stimuli, internal psychological processes, and market competition within the SOR framework, advancing our knowledge in this field.

• Environmental and Resource Economics Review
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• v.13 no.2
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• pp.219-243
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• 2004

Generally, electricity market has monopoly market structure because of need of enormous investment for infrastructure. However, the introduction of competition in network industry as electricity is a tendency of the world with decreasing the effects of economy of scale due to the advancement of technology. Now, electricity industry restructuring is in progress but the competition in electricity retail market is not in force yet in Korea. Whether a effective competition exist or not is very important to policy decision maker who drive restructuring, but there are small numbers of quantitative researches on that. In this study, we estimated the effectiveness of competition in the electricity retail market through switching costs. If switching costs are high, consumers actually can be locked in incumbent firm in spite of introduction of competition. Therefore switching is a critical factor to determine effectiveness of competition and to estimate the size of switching costs quantitatively can proffer the information about whether the competition in the electricity retail market is effective or not in the future. We estimated switching costs using consumer' stated-preference data by conjoint analysis. In according to estimation results, the cost of switching process is not so high, but the relative brand loyalty of an incumbent company is significantly high. And the price is considered as the most important factor choosing an electric service commodity. Based on the empirical results, it is possible to analyze the relationship between suppliers' competitiveness resulted from management efficiency and customers' switching possibilities. The paper therefore provides guidance for suppliers in deciding to enter into retail competition and for policy makers in introducing retail competition. And it has a significance of estimating the switching costs directly.