• Journal of Korea Technology Innovation Society
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• v.9 no.4
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• pp.740-758
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• 2006

This paper is related to the optimal pricing of Internet Backbone Services that are differentiated according to the size of the bandwidth required for applications with different quality sensitivities, Itdiscusses IBP (Internet Backbone Provider) optimal nonlinear pricing process in the presence of a congestion externality in addition to strategic behavior by users. In this scenario, the quality of service provided may reach its socially optimal level irrespective of strategic behavior by users and may be independent of the characteristics of the applications delivered over the Internet.

• Proceedings of the KIEE Conference
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• 2002.11b
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• pp.101-104
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• 2002

With the growing competitive pressure from market participants, utilities, consumer and government, analyses of existing competitive electricity market become more important. The presence of congestion in the transmission system can significantly increase the potential of exercising market power. Since the congestion in the network depends on the several factors. the market power cannot be simply analyzed through the existing indices. This paper presents a systematic analysis on local market power under uniform pricing scheme and provides some mitigation of the strategic market power.

• Journal of Korea Port Economic Association
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• v.28 no.4
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• pp.257-274
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• 2012

Since service competition among global supply chains became intensified, market-oriented system, instead of the existing cost-based system, for port service pricing has been strongly recommended in order to enhance their long-term viability and competitiveness. The Owen value of cooperative game frameworks allows us to apply a market-oriented pricing theory for the port pricing in the case of Gwangyang port to verify its usefulness. The analytical results of this paper suggested some solutions in the problem of berth-based cost allocation by a characteristic function and also showed the proper relative weights of factors to derive the quay use index by Budescu(1993). We also suggested a favorable port pricing system to major shipping firms as well as a discount port pricing system for their strategic alliance. To put it differently, the results of this study enable the port managers to make out some strategic port pricing system like the reasonable discount in port charge for the larger ship owners using the ports frequently.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.2
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• pp.221-226
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• 2007

This paper suggests a valuation framework of investment project using the concept of real options. We show the valuation process of real assets using the risk-neutral pricing. Especially, we focus on the investment lag. Real assets have investment lag in general. The decision time and the payment time are not identical. So the investment lag should be considered when valuing real assets for reality. We provide the valuation process for real assets, including R&D project. The results of this paper can be used for the real assets valuation and strategic decision analysis.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.34 no.2
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• pp.68-75
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• 2011

The purpose of this paper is to suggest a supplier and buyer's pricing decision strategy model with discount-policy over a long-term replenishment contract in a supply chain environment by small and medium size manufacturing company. We assume that the buyer has a superior economic power over a supplier and each agent in a supply chain is unaware of each other. The supplier proposes pricing decision strategy to induce the buyer to choose the terms of contract for the benefit of the supplier. Then buyer decides the terms of contract to maximize her profit considering supplier's discount-policy. We also present a numerical example to illustrate the efficiency of pricing decision strategy.

• Smart Media Journal
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• v.12 no.1
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• pp.54-61
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• 2023

Pricing, as one of the most important aspects of a business, should be taken seriously. Whatever affects a company's pricing system tends to affect its profits and losses as well. Currently, many manufacturing companies fix product prices manually by members of an organization's management team. However, due to the imperfect nature of humans, an extremely low or high price may be fixed, which is detrimental to the company in either case. This paper proposes the development of a fuzzy-based price expert system (Expert Fuzzy Price (EFP)) for manufacturing companies. This system will be able to recommend appropriate prices for products in manufacturing companies based on four major pricing strategic goals, namely: Product Demand, Price Skimming, Competition Price, and Target population.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2003.05a
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• pp.620-627
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• 2003

The real option pricing theory has emerged as the new investment decision-making techniques superceding the traditional discounted cash flow techniques and thus has greatly received muck attention from academics and practitioners in these days the theory has been widely applied to a variety of corporate strategic projects such as a new drug R&D, an internet start-up. an advanced manufacturing system. and so on A lot of people who are interested in the real option pricing theory complain that it is difficult to understand the true meaning of the real option value. though. One of the most conspicuous reasons for the complaint may be due to the fact that there exit many different ways to calculate the real options value in this paper, we will present a replicating portfolio method. a risk-neutral probability method. a risk-adjusted discount rate method (quasi capital asset pricing method). and an opportunity cost concept-based method under the conditions of a binomial lattice option pricing theory.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.52 no.10
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• pp.610-615
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• 2003

With the growing competitive pressure from market participants, utilities, consumer and government, analyses of existing competitive electricity market become more important. The presence of congestion in the transmission system can significantly increase the potential of exercising market power. Since the congestion in the network depends on the several factors, the market power cannot be simply analyzed through the existing indices. This paper presents a systematic analysis on local market power under uniform pricing scheme and provides determining approach of the level of price cap as mitigation measure of the strategic market power.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.53 no.1
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• pp.56-66
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• 2004

As deregulation evolves, pricing electricity becomes a major issue in the electric industry. Participants of competitive marketplace are able to improve their profits substantially by adequately pricing the electricity. In this paper, game theory is applied to analyze the price-clearing in the generation bidding competition and the competition is modeled as the noncooperative and complete information. The result of this analysis can be useful in understanding spot price-clearing of electricity and generating entity's strategic behavior in the competitive electricity market.

• KIEE International Transactions on Power Engineering
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• v.4A no.4
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• pp.243-253
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• 2004

As deregulation evolves, pricing electricity becomes a major issue in the electric power industry. Participants in the competitive marketplace are able to improve their profits substantially by effectively pricing the electricity. In this paper, game theory is applied to analyze price-clearing in the generation bidding competition with the competition modeled as the non-cooperative and complete information game. The result of this analysis can be useful in understanding spot price-clearing of electricity as well as GENCOs' strategic behavior in the competitive electricity market.