Hyung-Sik Oh

The Impact of Competition on the Efficiency of Public Enterprise: The Case of Korea Telecom

The notion of total productivity can be employed in evaluating the performance of monopolistic public enterprises in a transitional period. This study comparatively analyzes the efficiency change of Korea Telecom (KT) once the biggest telecommunications service provider in Korea but now facing both domestic and foreign competition. Dichotomizing the reference period into before-competition and after-competition and using Data Envelopment Analysis (DEA), we measure the technical efficiency, the allocative efficiency and the overall efficiency and highlight the differences between two periods. It is observed that the overall efficiency has been significantly improved mainly due to the enhancement of the allocative efficiency but the technical efficiency has been slightly improved. The major cause of insignificant improvement of technical efficiency is due to hothouse competition and excessive regulation on management of KT. Monopolistic firms in transition can respond to the external competition by reducing input cost and excessive capital. There may exist a considerable time lag, however, in achieving the improvement of technical efficiency.

A Dynamic Competition Analysis of Stock Markets

This paper analyses the dynamic competition relationships of stock markets in Korea and the United States. The Lotka-Volterra system of equations, one of well-known competitive diffusion models, is adopted to represent the competitive situations of the Korean and US stock markets and it is empirically estimated using daily index data. The results show that in Korea, there existed a predator-prey relationship between KSE and KOSDAQ at the entry of KOSDAQ, and the interaction has remained unchanged during the study period. In the US, the entry of NASDAQ has had little effect on the NYSE but this effect has extended to symbiotic relationships and predator-prey relationship between the two stock markets. This article shows what differences lie in the relationships between first mover and new entrant, comparing the relatively mature US stock markets with the newly constructed Korean stock markets.

Optimal Energy Consumption Scheduling in Smart-Grid Considering Storage Appliance : A Game-Theoretic Approach

In this research, we consider a smart grid network of electricity with multiple consumers connected to a monopolistic provider. Each consumer can be informed the real time price changes through the smart meter and updates his consumption schedule to minimize the energy consumption expenditures by which the required power demand should be satisfied under the given real time pricing scheme. This real-time decision making problem has been recently studied through game-theoretic approach. The present paper contributes to the existing literature by incorporating storage appliance into the set of available household appliances which has somewhat distinctive functions compared to other types of appliances and would be regarded to play a significant role in energy consumption scheduling for the future smart grid. We propose a game-theoretic algorithm which could draw the optimal energy consumption scheduling for each household appliances including storage. Results on simulation data showed that the storage contributed to increase the efficiency of energy consumption pattern in the viewpoint of not only individual consumer but also whole system.

Generating new service concepts based on ontology integration

Despite the fact that the service concept generation is considered as a key factor for success of new service development, relatively little attention has been paid to how to generate new service concepts. In response, this paper proposes a novel approach to generation of new service concepts based on ontology integration. Since ontology aims to capture the specification of concepts in a specific domain, knowledge set of a domain composed of concept network with various descriptions and relationships can be derived. In addition, creative combination of concepts and relationships between different domains can be generated by integrating ontologies, which makes new service concepts to be generated. Thus, proposed approach suggests how to generate the new service concepts using ontology integration with three steps - construction of service concept ontology, integration of ontologies, and generation of new service concepts. The proposed approach is expected to help service managers to understand the structure of currently provided services and identify candidate service concepts to be generated, thus generate the new service concepts.