• Title/Summary/Keyword: externalities

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Analysis of Innovation Patterns of Korean Online Game Industry (한국 온라인게임 산업의 서비스 혁신패턴 분석)

  • Nam, Young-Ho
    • Journal of Information Technology Applications and Management
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    • v.15 no.1
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    • pp.117-137
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    • 2008
  • Using the service innovation system model, the development of Korean online game industry is analyzed. The model proposed by Gallouj (2002) is modified in order to reflect IT service characteristics such as network externalities. Success factors and innovations patterns of Korean online game industry are examined. First, at the early stage of her growth, Korean online game industry was not supported or coordinated by any Government policies unlike DRAM, CDMA or TFT-LCD. Many parts of technical and service innovations were unintentionally initiated by online game developing ventures without predeterminde strategies. Second, the online game industry is basically a service industry so that users' needs and technical and service characteristics are intertwined to produce innovation. The innovation system of the online game industry is quite different from conventional product technological innovation systems in a sense that there are no blueprints for innovation as well as major players in the system. Third, Government's policies for promotion of IT industry such as the broadband infrastructure installation policy, the hi-tech venture promotion policy and the military exemption policy contributed greatly to development of the online game industry. However, these policy tools were not intended for online game industry but in the end gave a great impact on the service innovation system of the online game industry.

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Economic Analysis by Cost Estimation and Externality Classification to Agricultural Water Supply (논 농업용수의 외부효과 구분과 비용산정에 따른 경제성 분석)

  • Kim, Hae-Do;Hur, Seung-Oh;Jo, Jin-Hun;Na, Min-Chul
    • 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.

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The Role of the Spatial Externalities of Irrigation on the Ricardian Model of Climate Change: Application to the Southwestern U.S. Counties

  • Bae, Jinwon;Dall'erba, Sandy
    • Asian Journal of Innovation and Policy
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    • v.10 no.2
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    • pp.212-235
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    • 2021
  • In spite of the increasing popularity of the Ricardian model for the study of the impact of climate change on agriculture, there has been few attempts to examine the role of interregional spillovers in this framework and all of them rely on geographical proximity-based weighting schemes. We remedy to this gap by focusing on the spatial externalities of surface water flow used for irrigation purposes and demonstrate that farmland value, the usual dependent variable used in the Ricardian framework, is a function of the climate variables experienced locally and in the upstream locations. This novel approach is tested empirically on a spatial panel model estimated across the counties of the Southwest USA over 1997-2012. This region is one of the driest in the country, hence its agriculture relies heavily on irrigated surface water. The results highlight how the weather conditions in upstream counties significantly affect downstream agriculture, thus the actual impact of climate change on agriculture and subsequent adaptation policies cannot overlook the streamflow network anymore.

An Analysis of The Relative Importance for Target Selecting Criteria in Agricultural Environment Conservation Program (농업환경보전 프로그램 사업대상지 선정기준의 상대적 중요도 분석)

  • Kim, Hyeon-Woong;Sung, Jae-Hoon
    • Korean Journal of Organic Agriculture
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    • v.30 no.4
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    • pp.485-497
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    • 2022
  • Agricultural environmental policies to reduce negative externalities and expand positive externalities became common around the world. However, literature regarding the efficient and effective implementation of agricultural environmental policies, such as optional direct payment, is limited. This study, thus, analyzes the relative importance for target selecting-criteria in order to enhance the cost-effectiveness of the Agricultural Environment Conservation Program in Korea. In this context, we conducted survey to 15 experts who are related in agricultural environment policies and analyzed survey results based on ANP method which can consider correlation between selecting criteria. The results show that, in the case field, "soil", "water", and "ecology" field have relative high importance than the other fields. Also, the relative importance for 'improving rural landscape', 'giving nutrient input moderately', and 'conserving agricultural heritage' activities is higher than the other activities. Furthermore, the relative importance among fields and activities of ANP is different from those of AHP. This result implies that it is necessary to consider the correlation between selecting criteria in order to design effectively. Finally, we suggest that in order to enhance the effectiveness of the program, it would be appropriate to assign differential points according to the importance of each activity when identifying appropriate farms.

Service Innovation in Digital Contents Industry: A Case of Korean Online Games (디지털컨텐츠산업의 서비스혁신 패턴 분석: 온라인게임 사례를 중심으로)

  • Nam, Young-Ho
    • Journal of Technology Innovation
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    • v.17 no.1
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    • pp.119-148
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    • 2009
  • The paper presents and empirically tests a model of the digital contents(DC) innovation systems that enables us to study interactions between users, service providers, contents developers and network providers, and to examine the relationship between manufacturing innovation and service innovation as well as patterns of innovation in the DC industry. The framework of Gallouj and Weinstein(1997) and Gallouj(2002) is modified into the DC innovation model according to characteristics of the DC industry, that is, user involvement and network externalities. The model is applied to a case analysis that traces the growth of the online game industry in Korea since its introduction. The model offers several advantages over other approaches in understanding the dynamics in the DC industry. Most importantly, it provides a single unified basis within which both service innovation resulting from users and service providers and manufacturing innovation induced by contents developers, platform holders and network providers are analyzed. The distinction between service and manufacturing innovation is important in many ways, for instance in selecting proper government policy tools for promotion or regulation of the DC industry. Second, the Korean online game industry has experienced both radical innovation during the beginning period and non-radical innovation throughout the maturation period. The model developed herein helps to illustrate several types of non-radical innovations such as recombinative innovation that are crucial to sustainable development of the DC industry. Third, the model clarifies impacts of network externalities that are characteristics of the DC industry.

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An External Costs Assessment of the Impacts on Human Health from Nuclear Power Plants in Korea (국내원전운전(國內原電運轉)에 따른 보건영향(保健影響)의 외부비용평가(外部費用評價))

  • Kim, Kyoung-Pyo;Kang, Hee-Jung
    • Journal of Radiation Protection and Research
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    • v.33 no.2
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    • pp.67-76
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    • 2008
  • As the first comprehensive attempt at a national implementation, this study aims at assessing the external costs of major electricity generation technologies in Korea, particularly an evaluation of the impacts on human health resulting from exposures to atmospheric radiological emissions from nuclear power plants, and a monetary quantification of their damages. The methodology used for the assessment of the externalities of the selected fuel cycles has been developed by the International Atomic Energy Agency (IAEA), namely the SimPacts Model Package. The model is internationally recognized as a tool which can be applied to a wide range of fuels, different technologies and locations, for an externalities study. In this study, the relevant emissions are quantified first and then their impacts on human health are evaluated and compared. The study focused on all the nuclear power plants for the last 6 years ($2001{\sim}2006$) in Korea. With respect to nuclear power, the impact analysis only focuses on a power generation, however the front- and back-end nuclear fuel cycles are not included, namely uranium mining, conversion, enrichment, reprocessing, conditioning, etc., because these facilities are not present in Korea. The analysis results show that nuclear power in general, generates low external costs. The highest damage costs from the nuclear power plants among the 4 sites in Korea were estimated to be 3.9 mills/MWh, which is about 1/20th of the result for a similar case study conducted in the U.K., implemented through the ExternE project. This difference is largely due to the number of radionuclides included in the study and the amount of released radioactive emissions based on up-to-date information in Korea. In this study, the sensitivities of the major factors for nuclear power plants were also calculated. The analysis indicates that there was around a ${\pm}3%$ damage costs variation to a ${\pm}15%$ change of the reference population density and a ${\pm}1%$ damage cost variation to a $1{\sim}30$ meters change of the effective release height, respectively. These sensitive calculations show that there is only a minor difference when the reference costs are compared.

Economic Valuation of Green Open Spaces: The Effects of Homeownership and Residential Types (도시녹지의 경제가치 평가: 소유 여부와 주택유형의 영향)

  • Choi, Andy Sungnok;Cho, Seong-Hoon
    • Environmental and Resource Economics Review
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    • v.30 no.3
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    • pp.395-433
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    • 2021
  • This paper aims to examine the effects of homeownership and residential types on the economic values of urban green spaces. Green open spaces as public goods provide positive externalities that are comprised of pecuniary and technological externalities. Seoul, South Korea, is used as a case study using choice experiments, with split-sample online respondents of 1,000. The study results evidenced that the differentiation between the two types of externalities is imperative for equitable provisions and efficient management of various urban open spaces. There is a positively significant and substantial impact of homeownership for apartment dwellers, ceteris paribus, but not for house dwellers. For apartments, the efficiency loss can be reduced by increasing green spaces up to the critical point where the marginal cost is at equilibrium with tenants' marginal values. For non-apartment houses, it is not homeownership but the monthly household income that has a significant impact on the amenity value. In general, public benefits from green spaces are equivalent to 16% to 33% of the current residential prices on average for a view or access. Different residential types do not cause a significant impact on the access values. Residential profiles for green spaces were developed, together with tailor-made policy suggestions.

Games in Community Network Businesses (커뮤니티 네트워크 형성게임)

  • Oh, Jeong-Hun
    • Asia pacific journal of information systems
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    • v.11 no.3
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    • pp.91-104
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    • 2001
  • Like other communication networks, the Internet is establishing and reinforcing connections between market participants. By adapting to these networks, market participants are able to obtain the power of network to create new benefits in on-line markets. In this paper, we develop three stage non-cooperative game models to analyze the community related business market in electronic commerce where network externalities are present. It is found that, regardless of its market share, individual firm in a market tends to favor a community network. The analysis also shows there exist some possibilities that these community networks can trap the market in an inferior state when better alternatives are available to yield greater social welfare.

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Two-Sided Market and Entry (양면시장에서의 진입가능성 연구)

  • Jang, Dae-Cheol;Jeong, Yeong-Jo;An, Byeong-Hun
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2006.11a
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    • pp.437-452
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    • 2006
  • Previous research on two-sided markets has, for the most part, concentrated on indirect network externalities between buyers and sellers. This paper considers direct competition effect among sellers and among buyers as well as indirect network externalities. We develop an analytic model of C2C e-marketplaces and examine whether a monopolistic incumbent could successfully deter new entry into its market. We find that the effect of the number of sellers or buyers on the price of goods depends on whether sellers have decided to sell the goods using an auction or fixed pricing rule and on the characteristics of the goods. We argue that when the effect of the number of sellers on the price of goods is significantly larger than that of buyers, there is a high possibility of entry. In particular, we show that entry becomes more difficult to deter as fixed-price format is adopted more frequently or the proportion of collectables is relatively low.

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The Analysis of Patterns and Strategies of Standards Competition in Telecommunications Industry (정보통신산업의 표준화 경쟁의 유형과 전략에 관한 연구)

  • Park, Wung;Park, Jong-Bong;Kim, Young-Tae
    • Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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    • 2001.05a
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    • pp.591-596
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    • 2001
  • Many consumption goods, most notably in network markets including the telecommunications industry, exhibit network externalities. For that reason, standardization is the tore Issue in network markets with powerful positive feedback. firms in the telecommunications industry compete intensively against one another to build on early lead due to w inertia and network externalities. Therefore, a firm's strategies err very important in standards competition. In this paper, we'll examine the patterns of standards competition and cooperation, anti a variety of firms' strategies in the telecommunications industry. And then, we'll examine the trend of the change from standard competition to standard cooperation. After that, we'll suggest the national policies for the preemption.

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