Economic analysis of an n-unit parallel redundant system based on a Stackelberg game formulation

  • Authors:

  • Takeshi Koide;Hiroaki Sandoh

  • Affiliations:

  • Department of Information and Management Sciences, Faculty of Information Sciences, University of Marketing Distribution and Sciences, Gakuen-Nishimachi 3-1, Nishi-ku, Kobe 651-2188, Japan;Department of Management Science and Business Administration, The Graduate School of Economics, Osaka University, 1-7, Machikaneyama-Cho, Toyonaka, Osaka 560-0043, Japan

  • Venue:
  • Computers and Industrial Engineering
  • Year:
  • 2009

Quantified Score

Hi-index 0.00

Visualization

Abstract

A parallel redundancy has been researched in a great amount of literature on reliability theory. In the real circumstances, however, it is seldom observed except some systems that require much higher reliability. This is because most of the literature only look at the manufacturer's point of view. The present study carries out an economic analysis of an n-unit parallel redundant system against a single unit system based on a Stackelberg game formulation considering both the consumer's viewpoint and the manufacturer's one. It clarifies quantitatively in what situation the manufacturer can increase his profit by dealing in the parallel redundant system.