The value chain's use for the service industry

The value chain model (Porter, 1985) has been originally developed for manufacturing. Therefore, applying it to the service industry may cause several problems. This study examines the value chain's use for the service industry with particular reference to the hotel rooms division. Findings from the research show that the value chain technique is also useful for service organizations but its meaning in the strategic process is different from that for the manufacturing industry.     

Facilities to service based competition,not service to facilities based,for broadband penetration: A comparative study between the United States and South Korea

As a fundamental infrastructure in the Era of Information, a broadband network has a significant impact on democracy, economy, and society, indicating the importance of policy to increase broadband penetration. Considering the characteristics of broadband as a network, many governments introduced service-based competition, which is assumed to lower entry barriers by allowing entrants to lease incumbents' facilities, as a stepping stone to facilities-based competition.Questioning this unidirectional approach, the present study examines how the direction of policy implementation, that is service- to facilities-based versus facilities- to service-based, affects broadband diffusion. Through the case study of the U.S. and South Korea which experienced both modes of competition in opposing temporal sequences, this research concludes that facilities- to service-based competition might contribute to higher and faster broadband diffusion than service- to facilities-based competition. Rather than impose unbundling obligations against incumbents, facilities-based competition with financial support of the government to entrants seems to induce an earlier peak in broadband penetration. Additionally, consistent commitment of the government enforcement appears to be critical in implementing service-based competition.Though limited to the cases of the U.S. and Korea, this study suggests that service-based competition may be neither a necessity to facilitate broadband diffusion nor a precondition to introduce facilities-based competition. Moreover, service-based competition policy can function to deter overbuild of facilities and lessen the financial burden of broadband service providers if adopted after an initial period of facilities-based competition policy, which includes government investment in broadband facilities, that seems to help promote competition and give incentives to construct networks.Contrary to the literature, the present study raises a new perspective of the role of service-based competition as an enhancer for service quality and that of facilities-based competition with government investment as a booster of early and rapid broadband diffusion.     

Labor market outcomes under digital platform business models in the sharing economy: the case of the taxi services industry

Business Economics - This research investigates the effects of ride-sharing online platforms on the taxi and limousine industry. It also compares and contrasts labor market outcomes between...     

Do Free Trade Agreements Increase the New Goods Margin? Evidence from Korea

We analyze the changes in the composition of bilateral trade—and more specifically, in the new goods margin—following the free trade agreements (FTAs) signed by Korea between 2004 and 2008. We find that new goods trade increased disproportionately after the FTAs came into effect, and that least-traded goods (LTG)—those accounting for the lowest 10% of trade prior to the FTAs—ended up accounting for 37% of post-FTA trade with FTA partners. In contrast, the corresponding share for a comparable group of countries that did not sign FTAs with Korea was only half as large, averaging close to 20%. We also find that only less than 2% of all least-traded products accounted for most of the growth in LTG trade, and that those goods tended to be clustered in the same industries as the intensively-traded goods. Furthermore, a larger fraction of LTG became heavily traded for the case of FTA partners than for non-FTA countries. Finally, we find evidence that least-traded imports were subject to higher pre-FTA tariff protection than other products.     

European Agriculture after Brexit: Does Anyone Benefit from the Divorce?

The UK exited the EU on 31 January 2020, with a transition period agreed as part of the Withdrawal Agreement. During this transition period the UK and the EU will decide on their future trading relationship. No matter what form this relationship takes, there will be disturbances to agri‐food markets. This study analyses four different scenarios with increasing barriers to trade, ranging from a very close relationship similar to the European Economic Area to a distant relationship in which the UK and EU trade on Most Favoured Nation terms, using the EU focused global agricultural sector model CAPRI. In the UK, food prices will increase in all scenarios, making consumers in the UK the biggest losers. Only in a free trade agreement scenario does the UK show an unambiguous positive net welfare gain in just the agri‐food sector. In the case of the European Economic Area scenario, which assumes continued access to the single market, the net welfare impact would depend on the size of the UK’s continued contribution to the EU. In the EU, declining food prices would benefit consumers but the sum of the loss in farmers’ incomes and the UK’s EU CAP contribution would be much greater than the consumer’s gain. These impacts in agricultural markets under different future trade arrangements will also be influenced by the UK’s agricultural policy changes in direct payments as well as by possible further UK trade liberalisation after the end of the transition period.     

Travel industry structure in fast growing but immature outbound markets: the case of Korea to Australia travel

This paper examines the structure of the travel industry in Korea with particular reference to outbound travel to Australia. The relationship between the wholesaling and retailing functions is examined. It was found that despite the existence of strict licensing procedures, which have created three categories of travel business, the distinction between the wholesaling and retailing functions remains blurred. Most business is handled by a single category of operator — general travel agents. In contrast to the oligopolies evident in other industrial sectors in Korea, however a fairly large number of companies each handle a fairly small proportion of the market. This may change as a combination of intense price competition and the impact of the East Asian financial crisis forces less competitive operators out of business. Until the expected shake-out occurs, inbound tour operators in countries such as Australia will feel the pinch. An excessive and continuing emphasis on price will make it difficult for long-haul destinations to offer high quality products and to build high-yield business. Copyright © 1999 John Wiley & Sons, Ltd.     

Score manipulation,density continuity and intent-to-treat effect for regression discontinuity

Regression discontinuity (RD) is widely used in many disciplines of science to find treatment effect when the treatment is determined by an underlying running variable (‘score') crossing a cutoff or not. The main attraction of RD is local randomization around , which is, however, often ruined by manipulation on . To detect manipulation, the continuity of score density function at is routinely tested in practice. In this paper, we examine how informative is for RD, and show the following. First, for incumbency effect in election to which RD has been heavily applied, may have no information content. Second, for RD in general, the continuity is neither necessary nor sufficient for RD validity. Third, if the treatment cannot be implemented without manipulation of , then the manipulation had better be considered as part of the treatment effect, much as in ‘intent-to-treat effect’ for clinical trials. These findings call for relying less on continuity tests and, instead, thinking more about how subjects react to the treatment to modify their , how to design the treatment to lessen manipulation, and what to take as the desired treatment effect.