Minsoo Park

Measuring Network Effects in a Dynamic Environment

This paper proposes methods for identifying indirect network e ects with dynamically optimizing consumers purchasing a durable hardware good and associated software. We apply this model to data drawn from the DVD player and titles markets. We observe model-level prices, sales and characteristics of DVD players and sales and availability of DVDs monthly for 10 years. We augment these aggregate data with household survey data on player holdings. In our model, forward look- ing consumers buy possibly multiple DVD players over time and ben- e t from the evolution of the titles market. We provide a framework for addressing a series of econometric problems which have not been systematically addressed before.

Do New Media Substitute for Old Media?: A Panel Analysis of Daily Media Use

ABSTRACT In this article, we estimate the user substitutability and complementarity of media by using media diary data on the media use of individuals over the course of three days. Fixed-effects panel data models allow us to eliminate possible bias due to individual-specific media use propensity. We observe significant substitution among paper, television, and computer use, while telephone and computer use seem to be complementary in time of use. The magnitudes of substitutability and complementarity become larger if we control for subscriptions or the possession of media devices. For specific actions and purposes of use, there is substitutability within a smaller set of media. Televisions and computers exhibit substitutability for watching real-time television, cameras act as substitutes for video devices for viewing movies/videos, paper and computers exhibit substitutability for reading news articles, and computers and telephones substitute for one another in using informative content.

What Forms and Reforms Banking Regulations? A Cross-National Study

Abstract: We examine the determinants of regulatory frameworks in the banking sector using an extensive data set of regulations of more than 180 countries. In contrast with previous studies, we analyze multiple aspects of regulations independently in terms of their objects and functions, controlling for political and economic conditions that might affect regulatory structures. We find that each dimension of regulations is determined by different factors, and the incentives for the formulation of regulations differ between emerging and developed economies. Emerging economies regulate banking activities, entry, and foreign bank operations more tightly than do developed economies; however, emerging economies impose fewer restrictions on private monitoring requirements.

Do vertically and horizontally integrated firms survive longer? The case of cable networks in Korea

This study examines the determinants of the survival of Korean cable networks, focusing on their vertical and horizontal integration. We use survival estimations to analyze the cable networks’ duration. We find that a cable network survives longer if it is integrated with more same- and distinct-genre networks, has more viewers, and is carried by more distribution platforms. We also find that vertical integration has no significant effect on network duration when we control for horizontal integration. Although our study abstracts from estimating the cost or production function, the results suggest that joint program production may achieve substantial synergies such as portfolio effects and economies of scale and scope.

Quantifying substitution of mVoIP for cellular telephony in Korea

This study aims to estimate the substitutability between mVoIP and traditional cellular voice, and measure the impact of introducing mVoIP on MNO revenue. Using a conjoint analysis based on a survey experiment in the wireless communication market in Korea, we compute the probability of choosing mVoIP services conditional on the characteristics of payment plans and on the network environments that would support the use of mVoIP. We simulate the mobile plan substitution as a result of the use of mVoIP as well as call substitution between mVoIP and traditional cellular voice. Their simulation results, based on the estimates from a mixed logit model, show that the expected loss in MNO revenue may amount to as much as 17%.