• New & Renewable Energy
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• v.8 no.2
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• pp.33-43
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• 2012

Why solar companies preferred vertical integration of whole value chain? Major solar companies have built internally strong vertical integration of entire PV value chain. We raise a question whether such integration increases the corporate value and whether market situation affects the result. To test these questions, we conducted multi-variant analysis where characteristic factors mainly affect the corporate value measured in terms of Tobin'Q, based on the financial and non-financial data of PV companies listed in US stock market between 2005 and 2010. We hypothesize that since integration increases the overall efficiency but decreases the flexibility to adjust to various market situation, the combined effect of the efficiency gain and the flexibility loss ultimately determines the sign of integration effect on the corporate vale. We infer that the combined effect will be influenced heavily by business cycle, as in boom market (Seller's market) the efficiency gain may be larger than the flexibility loss and vice versa in bust market. We test whether the sign of combined effect changes after the year of 2009 and which factors influence most the sign. Year of 2009 is known as the year when market shifted from Seller's to Buyer's market. We show that 1) integration increases corporate value in general but after 2009 integration significantly decreases the value, 2) the ratios such as Production/Total Cost, Cash turnover period chosen for reversal of the flexibility measure are negatively affect Tobin's Q and especially stronger after 2009. This shows the flexibility improves corporate value and stronger in the recess period (Buyer's market). These results imply that solar company should set up integration strategy considering the tradeoff between efficiency and flexibility and the impact of the business cycle on both factors. Strategy only based on the price competitiveness determined in boom time can bring undesirable outcomes to the company. In addition, Strategic alliances in some value chains as a flexible bondage should be taken in account as complementary choice to the rigid integration.

• Environmental and Resource Economics Review
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• v.23 no.2
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• pp.187-224
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• 2014

We present key issues to consider in estimating damages from price-fixing cases and then apply the procedure addressing those issues to a transportation fuel market. Among the five methods of overcharge calculation, the regression analysis incorporating the yardstick method is the best. If the price equation relates the domestic price to the foreign price and the exchange rate as in the transportation fuel market, the functional form satisfying both logical consistency and modeling flexibility is the log-log functional form. If the data under analysis is of time series in nature, then the ARDL model should be the base model for each market and the regression analysis incorporating the yardstick method combines these ARDL equations to account for inter-market correlation and arrange constant terms and collusion-period dummies across component equations appropriately so as to identify the overcharge parameter. We propose a two-step test for the benchmarked market: (a) conduct market-by-market Spearman or Kendall test for randomness of the individual market price series first and (b) then conduct across-market Friedman test for homogeneity of the market price series. Statistical significance is the minimal requirement to establish the alleged proposition in the world of uncertainty. Between the sensitivity analysis and the model selection process for the best fitting model, the latter is far more important in the economic analysis of damage in price-fixing litigation. We applied our framework to a transportation fuel market and could not reject the null hypothesis of no overcharge.

• Environmental and Resource Economics Review
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• v.14 no.3
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• pp.699-728
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• 2005

This article is basically an extension of Barten(1993), Brown et al. (1995), Holt and Bishop's(2002) price formation system. A new dynamic price formation system is attempted considering full rationality of the consumers' side. The underlying idea of the new dynamic price formation system is that consumers are rational and farsighted and thus consider past and future consumptions in addition to current consumption to accept the prices traders called. In an empirical application, the U.S. commercial fish demand data are particularly interesting to this analysis in which the species are over fished, including many of the most valuable species. Especially, the grouper-snapper complex are under management jurisdiction of the National Marine Fisheries Council. In the empirical section, it shows how to adapt the model to estimate the marginal values to consumers of commercial fisheries. Since it is conceived of regulations as inducing movements along the marginal value curves, it is of growing importance to regional and national policy makers who are confronted with competing claims on diminishing fish stocks by commercial fisheries interests. It performs well and shows the plausible signs and magnitudes of price flexibilities and interaction among species. It further contributes to the general methodology of applied economics.

• Journal of the Korea Society for Simulation
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• v.31 no.1
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• pp.19-27
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• 2022

This study compares and analyzes wholesale(or price-only) contract, revenue-sharing contract, quantity-flexibility contract, and channel-rebate contract in a decentralized supply chain consisting of one supplier and one retailer. By setting the parameters of each coordination contract based on the previous results, we conduct simulations using @RISK for several combinations of these parameters. Under the supply chain coordination, we evaluate the probability of successfully signing a contract and the participant in favor of each contract. As a result, the quantity-flexibility contracts is most advantageous for the retailer and the channel-rebate contracts is most advantageous for the supplier. It revealed that revenue-sharing contracts can be used more flexibly because they can be selected in the widest range to redistribute profits between supplier and retailer.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.386-389
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• 2013

Under climate change and urbanization, rainwater harvesting (RWH) systems are emerging as an alternative source of water supply because of growing concern about water sustainability. RWH systems can satisfy the various watering needs and provide the environmental benefits of lessening the damages from flood, drought, and runoff. The economic success of a RWH system is vitally concerned with the determination of the design capacity of storage tank to be built in the system. The design capacity is determined by the factors of average annual rainfall, period of water scarcity, and water price during the whole life-cycles. Despite the high uncertainties inherent in these factors, the current engineering design of RWH system construction often assumes that storage tanks should be built all at once. This assumption implicitly ignores the managerial flexibility in responds to the future as new information comes out-the right to build storage tanks stage by stage depending on the evolution of demand. This study evaluates the value of a multistage storage tank construction using a real option approach. A case study involving a typical RWH system construction in Jeonju, the Republic of Korea is conducted. The managerial flexibility obtained from the real option perspective allows engineers to develop investment strategies to better cope with the issue of water sustainability.

• Journal of Korean Institute of Industrial Engineers
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• v.27 no.3
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• pp.267-273
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• 2001

While forecasting sales of a new product is very difficult, it is critical to market success. This is especially true when other products have a highly negative influence on the product because of competition effect. In this paper, we develop a choice-based competitive diffusion model and apply to the case where two digital mobile telecommunication services, that is, digital cellular and PCS services, compete. The basic premise is that demand patterns result from choice behavior, where customers choose a product to maximize their utility. In comparison with Bass-type competitive diffusion models, our model provides superior fitting and forecasting performance. The choice-based model is useful in that it enables the description of such competitive environments and provides the flexibility to include marketing mix variables such as price and advertising.

• The International Journal of Costume Culture
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• v.3 no.3
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• pp.235-245
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• 2000

The purposes of this study were 1) to investigate usage level of production strategies based on group of production environment, 2) to investigate usage level of production systems based on group of production strategy, and 3) to analyze each of company performance based on group of production strategy and system. For this study, the questionnaires were administered to 215 apparel manufactures in metropolitan area from Feb. to Mar. 1998. Employing a sample of 201, data were analyzed by factor analysis, descriptive statistics, cluster analysis, discriminant analysis, and multivariate analysis of variance. The following are the results of this study. 1. Concerning production strategy due to group of production environment, the stable group and the complicated group prefer to rice/quality centered strategy but the level of usage for strategies is so pretty that it is not significant to carry out them. 2. Concerning production system due to group of production strategy, the workers centered group is occupied high in the price/quality centered group & the complex group. And also the product centered system is occupied high in the flexibility centered group. 3. Concerning company performance due to group of production strategy and system, the price/quality centered group holds low position of performance comparing to another groups. And the performance of the managers centered group is higher than that of the workers.

• Journal of the Korean Society for Precision Engineering
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• v.24 no.2 s.191
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• pp.127-133
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• 2007

The spindle system with a built-in motor can be used to simplify the structure of machine tools, to improve the machining flexibility of machine tools, and to perform the high speed machining. To improve the competition power of price to quality, spindle design is very important. Because it possesses over 10 percent of machine tool's price. The latest machine tools have rotational frequency and excellent about might and precision cutting. So it requires static and dynamic strength in the load aspect. In conclusion, the deformation of the spindle end have to extremely small displacement in static and dynamic load. In this study, On the assumption that the bearings that are supporting 24,000rpm high-speed spindle are selected in the most optimum condition, the natural frequency and deformation of the spindle end is obtained by FEM mode analysis. The Taguchi Method was used to draw optimized condition of bearing position and it's stiffness.

• Environmental and Resource Economics Review
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• v.21 no.2
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• pp.301-319
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• 2012

The primary purpose of Renewable Portfolio Standard (RPS) is to facilitate investment in renewable energy technology. Since emission trading program has similar purpose, it is conceivable to attempt to link RPS and emission trading program through interlinked markets. RPS in Korea with single REC and emission allowance markets has particular advantages for constructing linkages between two markets. This paper provides a real option model to examine investment effects of linkage of RPS to the trading program. Emission permit price and REC price are assumed to follow stochastic processes and renewable investment is irreversible. The result shows that linked market provides further incentive for renewable investment by raising managerial flexibility for power companies.

• Journal of Welding and Joining
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• v.8 no.3
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• pp.60-69
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• 1990

Plasma arc cutting is a fusion cutting process in which a gas-constricted arc is employed to produce a high-temperature, high-velocity plasma jet on the workpiece. This process provides some advantages such as increased cutting velocity, excellent working accuracy and the ability to cut special materials (widely used stainless steels and Al-alloys, for example), when compared with iconventional oxyfuel gas cutting. From the view point of price and reliability of the power source, plasma arc cutting has also some distinct advantages over laser beam cutting. High-speed machines with NC or CNC systems are needed for the plasma arc or laser beam cutting process, while for oxyfuel gas cutting, low-speed machines with copying templates or optical-shape tracking sensors can be applied. The low price and high flexibility of the microprocessor arc contributing more and more the application of CNC system in the plasma arc cutting process, as in other manufacturing fields. From these points of view, a microprocessor-based plasma arc cutting system was developed by using a reference-pulse system, and its performance was tested. The interpolating routines were programmed in the assembly language for saving the memory volume and improving the compouting speed, which has an intimate relationship with the available cutting velocity.