Research Article
Economic Analysis of the Kiosk Industry
1 Sungkyunkwan University
Published: January 2020 · Vol. 24, No. 1 · pp. 21-48
DOI: https://doi.org/http://dx.doi.org/10.17287/kbr.2020.24.1.21
Full Text
Abstract
With the rapid increase in the minimum wage, the use of kiosks to provide unmanned services is growing at a fast pace. Such kiosks can replace the work previously performed by employees, reducing the minimum number of employees required for a given operation. This growth in the use of kiosks increases the responsiveness of labor demand to wage changes; furthermore, it affects labor productivity, employment, and operating profits in the service industry. However, few studies have investigated the effects of kiosks in the service sector; therefore, we analyze the trends and future prospects of the domestic kiosk industry. In addition, this study explains the quantification of unattended work in the restaurant and retail sectors due to kiosk technology. Microeconomic analyses of isoquant curves and producer balances show that the introduction of kiosk technology and equipment can reduce labor input in the short and long runs and can enable lower-cost production. Owing to these various advantages, the kiosk market has been actively growing, and the use of unmanned environments has become a trend. It is necessary to thoroughly analyze the impact of unmanned technology on society as a whole, prepare for the coming era of change, and revise the related policies and systems.
