• Environmental and Resource Economics Review
• /
• v.13 no.1
• /
• pp.119-131
• /
• 2004

A green market refers to a market that consists of environmentally aware consumers. A few researches have been carried out on the effects of environmental policy measures in a green market. These existing researches were based on a vertical differentiation model with firms' price-setting behavior, and derived that unit emission standard and environmental product taxes could not reduce the amount of pollution emission. This note considers a vertical differentiation model with firms' quantity-setting behavior, and shows that, contrary to the previous result, the amount of pollution emission is reduced by the introduction of unit emission standard. This implies the importance of the nature of firms' interaction in figuring out the pollution abatement effect of environmental policy measures in a green market.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.21 no.10
• /
• pp.589-601
• /
• 2020

The Construction Standard Unit Price (CSUP) sets the standard for calculating the estimated construction cost. The CSUP is used as basic data for preparing a standard price for public construction. Currently, the CSUP is calculated in consideration of the market and construction field conditions. However, a long-term management plan was established to prepare revised standards. As part of the plan, a field survey was conducted on changes in construction conditions and market prices. However, the plan continued for more than 5 years. Thus, the plan has a problem of difficulty continuously managing primary activities that have high importance and high price volatility. Therefore, to efficiently manage the CSUP, this study identifies the primary activities of the CSUP and presents a management plan. Through importance analysis and unit price volatility analysis, 242 primary activities in 35 activity groups were identified. Also, a management plan is presented based on the importance levels of activities. The primary activities and management plan could enable the timely revision of important activities. The results of this study provide a base for reflecting the appropriateness of construction cost criteria on time.

• Journal of Korea Trade
• /
• v.23 no.4
• /
• pp.1-16
• /
• 2019

Purpose - This research empirically proves that global shipbuilding industry leadership has moved to China from Korea. Design/Methodology - Competitiveness is measured by AHP for the weights of comprehensive competitiveness, which is the output mixture of three attributive factors: shipbuilding technology, shipbuilding contract price, and export credit. Findings - China is far ahead of Korea for standard vessels such as bulkers and containerships with competitiveness weights of 0.762 and 0.612, respectively, against 0.238 and 0.388 of Korea. Korea is maintaining its competitiveness only in LNG carriers (174k CBM) with a competitiveness weight 0.621. China and Korea have similar competitiveness for chemical carriers, complex vessels with a small hull size. The sources of Chinese competitiveness are shipbuilding contract price and export credit. With the majority share of standard vessel types in the world fleet, China will hold a bigger market share than Korea in the global shipbuilding industry in the forthcoming years. Implications - The swing factors of market power are shipbuilding technology and contract price. If China fails to further develop shipbuilding technology for shipowners worried about the reliability of the Chinese-built vessels, shipowners may swing back to Korea. The rising Chinese labor cost will expedite this swing in the forthcoming competition. Originality/value - To the best of the author's knowledge, this is the first paper that quantitatively examines the competitiveness of shipbuilding between China and Korea by comparing attributive factors for competitiveness.

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

• Management & Information Systems Review
• /
• v.30 no.2
• /
• pp.257-275
• /
• 2011

The price relationship between the futures market and the underlying spot market has attracted the attention of academics, practitioners, and regulators due to their roles during periods of turbulence in financial markets. The purpose of this paper is to investigate the dynamic of price relationship(or lead-lag relationship) between Korean Treasury Bond futures market and spot market. To examine the nature of the price relationship, descriptive statistics, serial correlation, and cross-correlation are used as a preliminary statistics in the Korean Treasury Bond spot and futures market. Next, following Stoll-Whaley(1990) and Chan(1992), the multiple regression method is used to examine the lead-lag patterns between the two markets. The empirical results are summarized as follows. The mean returns of spot markets and future markets are positive(+) and negative(-) respectively and the standard deviation of both stock and futures returns increase through the sub-periods. For the most periods, there is negative skewness in the both markets. The zero excess kurtosis due to the heavy tails of the distribution are relatively large. The autocorrelations in the spot returns for the sample periods are positive in time lag 1, but the autocorrelations in the future returns shows no significant evidence. The results of the daily cross-correlations between the KTB spot and futures returns indicate that a lead-lag relationship don't exist for price changes of futures and spot markets as a preliminary analysis. Finally, empirical results of regression analysis for both market indicate that there is no evidence that the KTB futures lead the KTB spot market, or the KTB spot market lead the KTB futures market. These results are robust for all sub-periods.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.12
• /
• pp.1-10
• /
• 2020

This study investigates the problem of outlier detection based on discrete wavelet transform in the context of time series data where the identification and treatment of outliers constitute an important component. An outlier is defined as a data point that deviates so much from the rest of observations within a data sample. In this work we focus on the application of the traditional method suggested by Tukey (1977) for detecting outliers in the closed price series of the Saudi Arabia stock market (Tadawul) between Oct. 2011 and Dec. 2019. The method is applied to the details obtained from the MODWT (Maximal-Overlap Discrete Wavelet Transform) of the original series. The result show that the suggested methodology was successful in detecting all of the outliers in the series. The findings of this study suggest that we can model and forecast the volatility of returns from the reconstructed series without outliers using GARCH models. The estimated GARCH volatility model was compared to other asymmetric GARCH models using standard forecast error metrics. It is found that the performance of the standard GARCH model were as good as that of the gjrGARCH model over the out-of-sample forecasts for returns among other GARCH specifications.

• Journal of Distribution Science
• /
• v.11 no.10
• /
• pp.73-79
• /
• 2013

Purpose - This study examines the impact of oil price volatility on economic activities in Korea. The new millennium has seen a deregulation in the crude oil market, which invited immense capital inflow into Korea. It has also raised oil price levels and volatility. Drawing on the recent theoretical literature that emphasizes the role of volatility, this paper attends to the asymmetric changes in economic growth in response to the oil price movement. This study further examines several key macroeconomic variables, such as interest rate, production, and inflation. We come to the conclusion that oil price volatility can, in some part, explain the structural changes. Research design, data, and methodology - We use two methodological frameworks in this study. First, in regards to the oil price uncertainty, we use an Exponential-GARCH (Exponential Generalized Autoregressive Conditional Heteroskedasticity: EGARCH) model estimate to elucidate the asymmetric effect of oil price shock on the conditional oil price volatility. Second, along with the estimation of the conditional volatility by the EGARCH model, we use the estimates in a VECM (Vector Error Correction Model). The study thus examines the dynamic impacts of oil price volatility on industrial production, price levels, and monetary policy responses. We also approximate the monetary policy function by the yield of monetary stabilization bond. The data collected for the study ranges from 1990: M1 to 2013: M7. In the VECM analysis section, the time span is split into two sub-periods; one from 1990 to 1999, and another from 2000 to 2013, due to the U.S. CFTC (Commodity Futures Trading Commission) deregulation on the crude oil futures that became effective in 2000. This paper intends to probe the relationship between oil price uncertainty and macroeconomic variables since the structural change in the oil market became effective. Results and Conclusions - The dynamic impulse response functions obtained from the VECM show a prolonged dampening effect of oil price volatility shock on the industrial production across all sub-periods. We also find that inflation measured by CPI rises by one standard deviation shock in response to oil price uncertainty, and lasts for the ensuing period. In addition, the impulse response functions allude that South Korea practices an expansionary monetary policy in response to oil price shocks, which stems from oil price uncertainty. Moreover, a comparison of the results of the dynamic impulse response functions from the two sub-periods suggests that the dynamic relationships have strengthened since 2000. Specifically, the results are most drastic in terms of industrial production; the impact of oil price volatility shocks has more than doubled from the year 2000 onwards. These results again indicate that the relationships between crude oil price uncertainty and Korean macroeconomic activities have been strengthened since the year2000, which resulted in a structural change in the crude oil market due to the deregulation of the crude oil futures.

• Journal of the Korean Society of Food Culture
• /
• v.32 no.6
• /
• pp.549-557
• /
• 2017

As many companies are performing brand management as a marketing strategy to establish long-term relationships with their customers, consumers decide the actual purchasing behavior by understanding the brand attributes of the relevant company based on an evaluation standard of the products. This paper provides the basic data for improving the competitiveness of the coffee shop market continuously, and analyzes the influential relationships between each variable by limiting the brand attributes of the coffee shop and the price fairness factor that would be expected to affect the consumers' purchasing behavior as the cause variables. The results showed that the-out of brand attribute factors of the coffee shop, the brand awareness and perceived quality had significant effects on the price fairness while the influence of the shop image on the price fairness was not verified. In addition, all the brand awareness, shop image, and perceived quality had significant effects on the purchasing behavior while the statistical significance between price fairness and purchasing behavior was verified. The rationality of the price presented by the coffee shop could be judged depending on the quality perceived by the consumers. Similarly, once consumers classified the propriety of price and then perceived that a suitable price had been set up regarding the quality and service provided by the coffee shop, it was highly possible for them to include it in their actual purchasing behavior, despite the higher price than other brands'. Further research on the psychological variables affecting the purchasing behavior by securing more diverse consumers to understand their purchasing behavior for a wide range of research subjects and the generalization of research results, will provide useful data for establishing marketing measures necessary to form strong relationships between consumers and brand in the currently-saturated coffee shop market.

• Korean Journal of Agricultural Science
• /
• v.24 no.2
• /
• pp.138-144
• /
• 1997

Korean agricultural and rural economics has been gotten more difficult through the introduction of economics system under the control of IMF before problems from open market system under WTO get to be settled. Export should be promoted to get the advantage of open market system and to get over today's economic crisis from shortage of foreign currency. Fortunately, Korea adjoins Japan that is largest importing country of agricultural products in a world, therefore Korean Agricultural products has advantage in export to Japan through open market system. Puyo tomato, specialized agricultural products in Chungman province, has been exported 42.2M/T to Japan from 1994 year to 1996 year. But such exported amount was so small that is less than a 1% of total tomato product in Puyo area. Reasons why export volume to Japan was so small were non standard commodities, non performance of export contract, unfavorable price condition, etc.. But it was major reason that missed optimal exporting period. Therefore this study is aimed at finding optimal period exporting Puyo mini tomato to Japan. According to result of analysis based on monthly price and carried quality data of major tomato market between Korea and Japan, it has more comparative advantage that we export tomato during Period of Dec-Feb. rather than March-May which is currently major exporting period.

• Korean Journal of Organic Agriculture
• /
• v.18 no.4
• /
• pp.489-509
• /
• 2010

The object of this study is to analyze marketing situations and to suggest developing issues for organic farming. Organic agricultural products (OAP) has been steadily grown by an annual 36.4 percent over the past ten years, and production of OAP took up 4.5 percent of the Environmentally friendly agricultural products (EFAP) in 2009. 9,403 farmers, cultivated area 13,343ha and production 108,810 M/T in Organic agriculture are respectively formed 0.8 percent, 0.8 percent and 0.6 percent of Korea agriculture in 2009. And production of livestock products to have been certificated from the year 2005 was over 10,000M/T in 2008. OAP is mainly distributed by direct marketing system. The market size of OAP is 188.5 billion in 2008 and has been grown by an annual 30.1 percent. The price difference between OAP and general agricultural products is about 65.8 percent. Several issues on the marketing system of OAP are as follows : overcost of OAP marketing socially, imbalance of supply and demand, absence of standard price, institutional insufficiency to marketing within wholesale market, retail price inflexibility of consumer's cooperative, and so on.