Jungsuk OH

Publications (3)0 Total impact

• Source

  Available from: SSRN

  Article: Service Bundling and the Role of Access Charge in the Broadband Internet Service Market

  Jungsuk Oh
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  ABSTRACT: Using the classical Hotelling model, this paper analyzes the incentive for a CATV service provider to bundle broadband internet services when entering the broadband internet services market. In addition, the effect of such service bundling by an entrant on the market incumbent with ownership over existing bottleneck facilities is analyzed. Furthermore, an access charge that maximizes social welfare is explored and determined. Two cases are considered: in the first case, the market is fully covered; and in the second case, the market is not fully covered. With full market coverage, an entrant has an incentive for service bundling if there is sufficient service differentiation. The entrant's bundling strategy reduces the incumbent's profit. In this case, the total social welfare is independent of the level of the access charge and only has an effect of redistributing the net surplus between consumers and the incumbent. With partial market coverage, the entrant has an incentive for service bundling at a low access charge. The incumbent's profit increases if the access charge is higher than the cost of access provisioning. In this case, the total social welfare is dependent on the level of access charge and the welfare maximizing access charge is less than the unit cost of providing access.
  Economics of Networks eJournal. 06/2007;
• Source

  Available from: uni-muenchen.de

  Article: Service Bundling and the Role of Access Charge in the Broadband Internet Service Market

  Sunghee SHIM, Jungsuk OH
  [show abstract] [hide abstract]
  ABSTRACT: Using the classical Hotelling model, this paper analyzes the incentive for a CATV service provider to bundle broadband internet services when entering the broadband internet services market. In addition, the effect of such service bundling by an entrant on the market incumbent with ownership over existing bottleneck facilities is analyzed. Furthermore, an access charge that maximizes social welfare is explored and determined. Two cases are considered: in the first case, the market is fully covered; and in the second case, the market is not fully covered. With full market coverage, an entrant has an incentive for service bundling if there is sufficient service differentiation. The entrant's bundling strategy reduces the incumbent's profit. In this case, the total social welfare is independent of the level of the access charge and only has an effect of redistributing the net surplus between consumers and the incumbent. With partial market coverage, the entrant has an incentive for service bundling at a low access charge. The incumbent's profit increases if the access charge is higher than the cost of access provisioning. In this case, the total social welfare is dependent on the level of access charge and the welfare maximizing access charge is less than the unit cost of providing access.
  10/2006;
• Source

  Available from: kaist.ac.kr

  Article: Determination of Revenue Streams Subject to Sharing in the Mobile Internet Market

  Byungwan Koh, Jungsuk Oh
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  ABSTRACT: Wireless operators often outsource the task of creating content to independent content providers in the mobile Internet market. Revenue streams of the mobile Internet market typically consist of two main sources, data traffic and content sales. It is often the case that only the revenue from content sales is subject to sharing between wireless operators and content providers. This paper applies the "dummy variable axiom" to the market data of a representative Korean wireless operator to show that, in some cases, data traffic revenues should also be shared between the wireless operator and content providers.
  Review of Network Economics. 01/2006; 5(3):337-350.