• Health Policy and Management
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• v.11 no.1
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• pp.107-130
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• 2001

During the last year, we had a very severe situation with the strike of physicians working in medical facilities. From that time, many politicians and scholars insisted on the expansion of public hospitals to enhance the public role in the medical care sector. They think that private medical facilities work for profit motivation and that the high proportion of private to whole facilities is an obstacle to the public function of medical care under social insurance system. They found that one of the reasons for failing to prevent the physicians' strike was the high proportion of private facilities. Others insisted that the strike was not a good reason for the expansion of public hospitals. The physicians' strike was a very rare case, and it is not a good basis for generalization of the discussion of public hospitals. Last year almost all apprentice physicians in public facilities took part in the strike, and consequently the public hospitals also lost the role of public function. They view this increasing involvement of government in the medical sector as improper and the cause of inefficiencies. In this paper we review the debate over the expansion of public facilities. To clarify the debate, we review traditional criteria for the role of government in a market system and to apply these criteria to medical care. There are two traditional areas where government Is acknowledged to have a role in a market system: market imperfections and market failure. Where market imperfections and market failure exist, there may be a role for government. The justifications for government intervention are consumer protection and the existence of externalities. One of externalities is to provide medical care for the poor. The appropriate measures to provide medical owe to the poor can be sought in both demand and supply side subsidies. National health insurance is a method of demand subsidies and establishment of public hospitals is a method of supply side subsidies. Under the National Health Insurance System, the expansion of public hospitals is not an appropriate subsidy policy.

• Journal of Korea Port Economic Association
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• v.26 no.2
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• pp.58-81
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• 2010

The economic appraisal of a port remodeling project must be transparent and persuasive to the public over the entire stage of the project. A project evaluator need to be familiar with the guidelines on evaluation, and to do his best to follow the guidelines to evaluate the given project. To make the right decision on investment, the evaluator must take into consideration not only economic efficiency, but also equity issues such as income redistribution and balanced development between regions. Port remodeling projects tend to produce externalities to the environment. However, these externalities are of qualitative nature, and hard to measure in monetary terms, so these are liable to be ignored in the process of project evaluation. Two different approaches - RP(revealed preference) and SP(stated preference) have been tried to assess the value of these non-market goods. Government authorities need to set minimum guidelines which project evaluators must follow in order to make the evaluation more reliable.

• Journal of Digital Convergence
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• v.17 no.10
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• pp.177-186
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• 2019

The purpose of this study is to enhance the understanding of consumer experience and behavior of Internet of Things (IoT) services and to provide practical implications through investigating the impact of benefits-cost factors and network externalities on consumers' adoption intention of IoT services. An online survey was conducted on general consumers in their 20s to 60s who were aware of the IoT services and 328 data were collected. Using SPSS 24.0, frequency analysis, correlation analysis, factor analysis, and hierarchical regression analysis were conducted. As a result, the level of consumers' IoT service experience in various contexts was examined, and entertainment, informativeness, loss of humanity, compatibility, and complementarity were found to have a significant effect on consumers' adoption intention of IoT services. This study suggests that strengthening network externality effects by increasing compatibility and complementarity is important in promoting consumers' adoption of IoT services. In future studies, it is necessary to adopt specific Internet of Things services to verify the validity of the models developed in this study.

• Asia Marketing Journal
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• v.7 no.2
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• pp.23-46
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• 2005

Social marketing emerged as a significant paradigm in the late 1960s when the conceptual boundaries of marketing were broadened by some scholars. Accordingly, social marketers have tended to apply traditional marketing tools, albeit within a vastly different context. After reviewing and classifying the social marketing literature into traditional and interdisciplinary approach, the author found out that both approaches disregarded the special context in which social marketing operated. In this regard, the author maintains that social marketers, operating in an environment that is characterized by intricate exchange and amplified market failure brought about by externalities, may be ill-equipped to foster change utilizing conventional marketing tools. Therefore, this paper proposes that social capital is an appropriate theory to supplement traditional notions of marketing to further enhance the field of social marketing as it takes into account market failure, intricate exchange, and behavioral and social phenomena.

• Proceedings of the Technology Innovation Conference
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• 1996.12a
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• pp.154-178
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• 1996

This paper applies the technology-gap trade theory to explaining radical changes in the competitive positions of countries in world machine tool markets over the last three decades. It develops the notion that the innovation gaps in machine tools among countries led to the inter-country differences in the competitive performance in the sector as well as in its user sectors. Since competitive advantage largely depends on a capability to improve, create and apply technology to market competition, a higher innovative performance in one country than another is closely related to a higher innovative performance. A higher innovative performance in machine tools is also associated with a higher competitive performance of the large areas of its user sectors, due to sectoral interdependences and externalities generated by machine tool innovations. The results of empirical investigation through a panel data analysis show that the international gaps in machine tool innovations appeared to have a positive significant relationship with the differences in the export performance of both the machine tool sector and its user sector across countries.

• 한국IT서비스학회:학술대회논문집
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• 2008.11a
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• pp.175-178
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• 2008

With rapid advancement of IT and Internet technologies, online market is surely becoming a stage of the competition among various forms of platform providers. This study show the significance of the negotiation process in the platform pricing strategy and observe several external/internal factors that might affect the negotiation power of the identities surrounding the platform. Major theories used in this study are the resource-based-view and network theory. Resources resulting in a negotiation power of the content providers and platform providers turn out to be widely scattered in their business areas - from product characteristics to the size of the content provider. End-user (or buyer) group which cannot make a strategic move for the organized development and use of resources is taking advantage of network externalities to support its negotiation power.

• Management Science and Financial Engineering
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• v.16 no.2
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• pp.1-15
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• 2010

Digital convergence which means the convergence of industry areas related to digital technologies is an important phenomenon in business, which will decide the fates of firms in the near future. The only firms which can create synergy effects from digital convergence are expected to be the winners in the fierce competition of digital convergence era. In our analysis, we examine the strategy of an integrated firm which has businesses in two different industry areas which are related to each other. By using a game theoretical model, we show how the integrated firm can win over two single separated firms which have business in only one industry area each by leveraging the two businesses the integrated firm has. In our welfare analysis, we also show that this convergence may be even beneficial to consumers, which seems counter-intuitive to social concerns about anti-competitive behaviors by integrated firms. Additionally, we study comparison between industry convergence and product convergence.

• Journal of Technology Innovation
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• v.12 no.1
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• pp.219-240
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• 2004

As Shapiro and Varian argue the open approach generates bandwagon effects and facilitates the diffusion of a standard thanks to network externalities. However, the open approach is not linked automatically to economic benefits as suggested by some famous cases as the IBM PC history. On the contrary, the closed approach enables a tight control over a technology and its development, and insures the appropriation of economic benefits. As Shapiro and Varian suggest, a firm can also decide to mix an open approach with tight control over improvement or extentions. Patent pool is to offer fair, reasonable, nondiscriminatory access under a single license to patents that are essential for the use of standards-based or other platform technologies. patent pool offers only one license to everyone, Since each patent is essential, the royalty rate and thus the value is the same whether a licensee uses one or more patents.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2005.10a
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• pp.189-206
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• 2005

Much of work on network externality assumed network effects are dependent on the network size. Therefore, very little consideration is given to the view that marginal benefits from joining the network may not increase with the network size if consumer benefits come from the direct interaction with neighbors, namely local network. In this study, we used the agent-based simulation method to reexamine the effectiveness of the traditional network market strategy under the presence of the local network where two incompatible technologies compete. We found that the strategy of growing an initial customer base is not effective under the presence of the local network. Our study also showed that targeting customers based on their technology Preference is not as effective as targeting customers within the same local network. As a result, the focus of a network market strategy should be directed to taking advantage of the customer network.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.1
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• pp.85-100
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• 2009

An online marketplace, such as eBay, is an example of two-sided markets. In online marketplaces, there are transactions between sellers and buyers and direct competition effects among sellers and among buyers. Previous research on two-sided market has not handle these competition effects and mostly focused on indirect network externalities between sellers and buyers. We analyze the fee structure of an online marketplace considering direct competition effects among sellers and among buyers. We find that when fees for sellers and buyers can be imposed, an auction or fixed-pricing rule can be chosen according to the characteristics of a product traded. But when only fees for sellers can be imposed, an auction can be taken as a trading mechanism solely.