• Journal of the Korea Safety Management & Science
• /
• v.1 no.1
• /
• pp.217-230
• /
• 1999

The prevalent phenomenon in the high technology market shows market-determined do facto standard is preferred to de jure standard determined by formal organization. The purpose of the study is to provide a framework to empirically examine the relationship between network externalities and switching costs from the consumer's point of view Key findings of the study are ： First, physical compatibility and upgradability are positively related to the network externalities. Second, conceptual compatibility and expertise are negatively related to the switching costs. Third, the network externalities and the switching costs are positively related to the continuous usage decision. Finally, the network externalities are positively related to the switching costs. The followings are major implications of the study. First, network externalities and bandwagon effects have different causal relationship respectively. Second, contrast to Weiss and Heide's (1993) study, the study suggests multiple dimensions of compatibility, Third, physical compatibility and upgradability increase switching costs through network externalities as the moderator.

• Asia-Pacific Journal of Business
• /
• v.9 no.2
• /
• pp.59-74
• /
• 2018

It is well known that market transactions do not lead to social optima when externalities exist. Given that previous studies such as RICARDO-AEA(2014) have identified various types of external costs, we must take their magnitudes, or externalities in general, into account in order to make toll prices to achieve social optimum. Little has been done on estimation of externalities in road uses in Korea, to the best of our knowledge. We suggested to use the contingent valuation method (CVM) to estimate overall social benefits and applied it to estimation of benefits of road kill prevention as a pilot study. Our empirical model has considered heteroskedasticity explicitly and its estimation result was that individual drivers were willing to pay 147 KRW on average in addition to current toll prices for prevention of road kills. We provided general discussions of externalities in road use and various internalization measures.

• World Technopolis Review
• /
• v.3 no.3
• /
• pp.122-138
• /
• 2014

The number of environment-related technologies has increased remarkably over the past two decades, as has the public's interest in effective resource use and ways to reduce the effects of global warming. Industries that are based on environment-related technologies are thus growing rapidly. Previous studies revealed that externalities derived from the population concentration in urban areas positively affect agglomerations of high-tech industries. Such externalities have been named the "knowledge spillover effect". The purposes of the present paper are to (1) give a thumbnail sketch of the locations of environment-related industries around the world, using the Organisation for Economic Co-operation and Development environment-related patent statistics, and (2) explicate the effects of the Marshall-Arrow-Romer (MAR) and Jacobs externalities, which result from population concentrations in urban areas, on the agglomeration of environment-related industries in Sweden. The analysis revealed that environment-related industries are located chiefly in urban areas across the globe, and that only the MAR externalities influenced positively on the agglomeration of these industries in Sweden.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
• /
• 2002.05a
• /
• pp.425-428
• /
• 2002

To understand and forecast the wireless internet market in Korea, we will analyse the network externalities in wireless internet market into communication network externalities and hardware/software network externalities. The wireless market has two competing streams, one is mobile internet and the other is wireless fan internet. Both are characterized by strong network externalities which lead to increasing return to stale. Mobile internet is supposed more suitable for communication and WLAN for data. However these two system will compete in some area, and the critical factor to deride the winner is supposed to be the network externalities as in so many other high-tech industries had showed.

• The Journal of Korean Institute of Communications and Information Sciences
• /
• v.36 no.7B
• /
• pp.806-817
• /
• 2011

This paper constructed a model estimating mobile nework externalities based on Ofcom model and estimated externalities mark-up. The main results are as follows: 1) there are 15,626,711 marginal subscribers in mobile network irrespective of its maturity. 2) the value of network externalities ranges 2.1 billions won to 435.4 billions won. 3) the extrenalities mark-up to support marginal subscribers ranges 0.03 won to 6.47 won. This results provide useful implications to policy about mobile network terminations fee as well as externalities mark-up disputes.

• Asia pacific journal of information systems
• /
• v.33 no.3
• /
• pp.652-676
• /
• 2023

The objective of this study is to provide a deeper understanding of the factors that lead to the development and adoption of AI-based chatbots. We analyze the structural relationship between the organizational (externalities), systematic (fit), and the consumer-related (psychological) factors and their role in the adoption of AI-based chatbots. Founded on the theories of task-technology fit and network externalities, we present a conceptual model overlooking common perception-based theories (e.g., Technology Acceptance Model). We collected 380 responses from Indian banking consumers to test the model using the PLS-SEM method. Interestingly, the findings present a positive impact of all factors on consumers' intention to adopt AI-based chatbots. However, the interplays between these factors provide a mixed perspective for literature. Apart from employing a combination of factors that have been used to study technology adoption, our study explores the importance of externalities and their relationship with fit factors, a unique outlook often overlooked by prior research. Moreover, we offer a clear understanding of latent variables such as trust, and the intricacies of their interplays in a novel context. Thereby, the study offers implications for literature and practice, followed by future research directions.

• Asia pacific journal of information systems
• /
• v.21 no.4
• /
• pp.27-43
• /
• 2011

This article explores economic models that show the optimal level of information security investment in the presence of interdependent security risks, Using particular functional forms, the analysis shows that the relationship between the levels of security vulnerability and the levels of optimal security investments is affected by externalities caused by agents' correlated security risks. This article further illustrates that, compared to security investments in the situation of independent security risks, in order to maximize the expected benefits from security investments, an agent should invest a larger fraction of the expected loss from a security breach in the case of negative externalities, while an agent should spend a smaller fraction of the expected loss in the case of negative externalities.

• Journal of the Economic Geographical Society of Korea
• /
• v.10 no.4
• /
• pp.414-426
• /
• 2007

The purpose of this study is to analyze whether the spatial externalities of agglomeration economy of manufacturing has been changed or not, from 1991 to 2005. To find this spatial SUR model was used to consider covariance of each equation and it was estimated by 3SLS. This paper found that spatial externalities has been decreased and there is economy of scale in same sector. As a result, we can conclude that there is industrial specialization in region whereas interregional linkage are weaken. This finding supports the desirability of creating supra-regional agencies promoting interregional linkage because supra-regional agencies can internalize spatial externality of agglomeration economy.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.42 no.2
• /
• pp.1-8
• /
• 2019

Network externalities are essentially dynamic in that the value consumers feel about a product is affected by the size of the existing customer base that uses that product. However, existing studies on network externalities analyzed the effects of network externalities in a static way, not dynamic. In this study, unlike previous studies, the impact of network externalities on price competition in a vertically differentiated market is dynamically analyzed. To this end, a two-period duopoly game model was used to reflect the dynamic aspects of network externalities. Based on the game model, the Nash equilibria for price, sales volume, and revenue were derived and numerically analyzed. The results can be summarized as follows. First, if high-end product has strong market power, the high-end product vendor takes almost all benefits of the network externality. Second, when high-end product has strong market power, the low-end product will take over most of the initial sales volume increase. Third, when market power of high-end product is not strong, it can be seen that the effects of network externalities on the high and low-end products are generally proportional to the difference in quality. Lastly, if there exists a strong network externality, it is shown that the presence of low-end product can be more profitable for high-end product vendor. In other words, high-end product vendor has incentive to disclose some technologies for the market entrance of low-end product, even if it has exclusive rights to the technologies. In that case, however, it is shown that the difference in quality should be maintained significantly.

• KDI Journal of Economic Policy
• /
• v.40 no.1
• /
• pp.67-83
• /
• 2018

We have hypothesized that nuclear risk is significantly inversely related to the distance from residences to nuclear power plants and that the level of life satisfaction of residents therefore increases with the distance. We empirically explore the relationship between Ulsan citizens' life satisfaction levels and the distance between their residences and the Kori and Wolsong nuclear power plants (NPP) based on the life satisfaction approach (LSA). The dataset we used covers only Ulsan citizens from the biennial Ulsan Statistics on Citizen's Living Condition and Consciousness of 2014 and 2016. Controlling for micro-variables such as education, work satisfaction, gender, marital status, and expenditures, we found a statistically significant relationship between life satisfaction and the distance between the residences and the nuclear power plants. Nuclear negative externalities including (i) health and environmental impact, (ii) radioactive waste disposal, and (iii) the effect of severe accidents can be quantified in terms of LS units and monetary units. We were able to calculate the monetary value of NPP externalities at $277 per kilometer of distance for Kori and $280 per kilometer of distance for Wolsong at constant 2015 prices. These estimates are quite different from the traditional estimates made with the contingent valuation method, whereas they are similar to the findings of LSA studies abroad. Hence, the need to adopt the LSA in South Korea and policy implications are demonstrated.