• Title/Summary/Keyword: incentives

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Economic Evaluation of Transmission Expansion for Investment Incentives in a Competitive Electricity Market

  • Fischer, Robert;Joo, Sung-Kwan
    • International Journal of Control, Automation, and Systems
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    • v.6 no.5
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    • pp.627-638
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    • 2008
  • With the shift of the electric power industry from a regulated monopoly structure to a competitive market environment, the focus of the transmission expansion planning has been moving from reliability-driven transmission expansion to market-based transmission expansion. In market-based transmission expansion, however, a growing demand for electricity, an increasing number of transmission bottlenecks, and the falling levels of transmission investment have created the need for an incentive to motivate investors. The expectation of profit serves as a motivational factor for market participants to invest in transmission expansion in a competitive market. To promote investment in transmission expansion, there is an increasing need for a systematic method to examine transmission expansion for investment incentives from multiple perspectives. In this paper, the transmission expansion problem in a competitive market environment is formulated from ISO and investors' perspectives. The proposed method uses parametric analysis to analyze benefits for investors to identify the most profitable location and amount for transmission addition. Numerical results are presented to demonstrate the effectiveness of the proposed method.

A Study on Analysis of Effectiveness of Incentive by Green Building Certification Criteria (친환경 건축물 인센티브 제도의 실효성 분석에 관한 기초연구)

  • Kwon, Kyong-Soo;Lee, Suk-Won;Kim, Ju-Hyung;Kim, Jae-Jun
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2012.11a
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    • pp.119-120
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    • 2012
  • The government has offered incentives to encourage private companies that are to meet the Green Building Certification Criteria. Despite offering these incentives, the Green Building Certification Criteria record share of newly-built building in 2010 is 0.35%, very low. Effectiveness of Green Building Incentive applied by the Green Building Certification Criteria is questioned. So we attempts to analysis about effectiveness of Green Building by using Cost-Benefit Analysis. But if we want to use CBA, we need to draw cost, benefit factors that compose the incentive. So in this study, for applying CBA, we analysis cost, benefit factors.

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Incentives to Pioneer the Next Generation Market for Two Firms with Asymmetric Conditions (비대칭적 조건하에서 기업간의 신시장 개척 유인 분석)

  • Lim, Jong-In;Oh, Hyung-Sik
    • Journal of Korean Institute of Industrial Engineers
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    • v.22 no.2
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    • pp.189-207
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    • 1996
  • In this paper, a market share competition model for two firms with asymmetric conditions is considered with. In the model, the asymmetry between two firms is given by the difference of market shares In the existing market and the change of market share is supposed to be occurred only through pioneering a new market. Since the timing decision of market pioneering is based on the continuous time domain, a super game structure which has infinitely many numbers of subgames is employed for the modeling. In the course of equilibrium finding, we show that there exists no subgame-perfect pure strategy equilibrium In this game. So, we apply a mixed strategy concept and find a unique subgame-perfect equilibrium behavior strategy. As a result of equilibrium analysis, we know that the relative sizes of pioneering Incentives between two firms are varying with parameter conditions. However, the global speed of market pioneering is proven to be independent with the level of asymmetry between two firms.

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Proper Incentives to Promote Information Exchange

  • Obayashi, Atsuomi
    • Industrial Engineering and Management Systems
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    • v.6 no.1
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    • pp.55-63
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    • 2007
  • Exchange of information is essential to the process of innovation such as product development. However, in many cases innovation fails because of a lack of knowledge sharing among parties concerned, even if parties individually have pieces of useful knowledge and skills. Besides physical factors like communication costs, the possibility of opportunistic behavior by parties like stealing ideas can discourage information exchange. This paper introduces a model to analyze incentives of information exchange. The model is a game by two players who alternately opt to offer information to the partner. It is suggested that information exchange can stop before reaching the efficient level. In order to attain the efficient information exchange, expectation of mutual benefit and absence of opportunistic motives in both players are needed. Methods for promoting information exchange include modifying payoff structure to meet the condition of information exchange. The fluidity of partnership may increase a variety of information exchange partners, but discourage building trust between partners which promotes information exchange.

Study on short period effect of Marginal Loss Factor(MLF) in Cost Based Pool (CBP시장에서 한계손실계수(MLF)의 적용에 따른 단기적 영향분석)

  • Lee, Jae-Gul;Yoon, Yong-Beum;Ahn, Nam-Sung
    • Proceedings of the KIEE Conference
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    • 2006.11a
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    • pp.43-45
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    • 2006
  • Because Cost Based Pool(CBP) has any locational signals for electricity price, there are any locational incentives for construction of new power plant high efficient. in case of Korean electricity power market, this incentives are very important to reduce loss and congestion. This Paper represent the effect of MLF(Marginal Loss Factor) as locational price signal in short period. we investigate mathematically loss reduced effect of MLF and prove to reduce transmission loss using 3bus test system.

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A Study on Invitation and Extension of Foreign Direct Investment in Korea (외국인직접투자 유치확대 방안에 관한 연구)

  • Oh, Soo-Kyun
    • International Commerce and Information Review
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    • v.7 no.4
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    • pp.367-386
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    • 2005
  • The purpose of this is to analyze environment of foreign direct investment and Act in Korea and to find invitation and extension of foreign direct investment into Korea. Investment incentives, simplification of investment procedures, image improvement, increased public relations and investment support services are all factors which can be enhanced in the short term to positively influence investors decision-making in where to invest. Since the enactment of the Foreign Investment Promotion Act in November of 1998, there has been a signification improvement in Korea's investment environment in terms of policies and systems. It is expected that the foreign direct investment environment in Korea will continue to improve through the improvement in political stability, labor-management relations and easing of political tensions between the North and South, in the long term, as well as through improvements in investment incentives, investment procedures and public relations activities, in the short term.

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The Operating Structure of Multiple Incentive Contracts : Emphasis on Structuring with the Performance Incentives (다차원 유인부 계약의 운영구조 -성과유인의 구조화를 중심으로-)

  • Kim, Chung-Bon
    • Journal of the military operations research society of Korea
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    • v.6 no.1
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    • pp.79-92
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    • 1980
  • In cost-only incentive contract the emphasis is the attainment of efficient and effective cost control. In contrast multiple incentives contract correlates contractor's profit motives with the generalized government objective function, the decision variables of which are performance or quality (technical progress), time or schedule (timely development and delivery) and the cost (efficient and effective cost control) Under multiple incentive structure, it is essential to formulate the trade-off curves between cost and performance, which are called iso-fee curves. Trade-off curves depict the combination of cost and performance achievement for which the contractor will be rewarded with the same fee. The basic function of trade-off curves is to show he the contractor will be motivated by incentive arragement to trade off or sacrifice the achievement in one incentive element for the acnievment in another.

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Incentivizing User Contributions in Idea Crowdsourcing through Quantitative and Qualitative Feedback : A Field Experiment

  • Cho, Sook-Hyun;Lee, Sang-Min;Moon, Jae Yun
    • Journal of Information Technology Applications and Management
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    • v.21 no.3
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    • pp.19-33
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    • 2014
  • Crowdsourcing is a popular tool for firms to harness external knowledge and resources. One variation of crowdsourcing entails the use of corporate channels in social network services (SNS) such as Twitter to hold public idea competitions. This study examined the role of feedback interaction between participants of idea competitions. More specifically, the study examined the impact of incentives to provide feedback on other participants' ideas. We found that idea competitions where explicit incentives were introduced to elicit crowdsourced feedback in the form of qualitative comments resulted in improved idea generation performance-with more ideas generated overall, and more ideas generated through participant collaborations, through increased comment-posting activities. Based on the findings, implications for theory and practice are discussed.