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How to determine the performance of a system

Zhang Han‐jiang (School of Economics and Trade, Hunan University, Changsha, China)
Luo Duan‐hong (School of Economics and Trade, Hunan University, Changsha, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 12 October 2012

1798

Abstract

Purpose

The purpose of this paper is to describe how the performance of a system is determined.

Design/methodology/approach

Systems with the same structure or function often have different performances. What makes the difference? Within a system, the various actors make their decisions by their own and their actions depend on the mechanism of the system. The actors' strategy selection under different mechanisms and the mechanism design are precisely in the range of Game Theory. This paper compares two different pricing mechanisms, the Stackelberg Game and Cournot Game, in a linear supply chain. And the obtained result of the different behavior (Pm*, Pr*) and different performance (Um*, Ur*) of the supply chain obviously approves our proposition that the operational mechanism is of great importance to the performance of the system, the same as structure.

Findings

It is the structure of the system and operational mechanism which determines the performance of the system.

Research limitations/implications

The paper's limitations lie in the fact that it is not yet based on experimental evidence from real‐world systems.

Practical implications

Game Theory is one of the most effective methods to study the systematic mechanism, especially the mechanism designs, because it reveals the inherent nature of the systematic mechanism.

Originality/value

This paper points out that the mechanism which restricts each behavioral subject determines the performance of these systems. It puts forward a new region for the research of general system theory.

Keywords

Citation

Han‐jiang, Z. and Duan‐hong, L. (2012), "How to determine the performance of a system", Kybernetes, Vol. 41 No. 9, pp. 1361-1369. https://doi.org/10.1108/03684921211275414

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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