Common use of Numerical Example Clause in Contracts

Numerical Example. The Stackelberg models produce the following optimal values for our decision variables based on equation (18) and (25): α = 3, Pw1 = 21170, Pa = 1550, qM1 = 23248.59, qÆ2 = 266, U1(C) = 0 Pw1 = 21170, C3r = 700, C3p = 800, qM1 = 23248.59, qÆ3 = 102, U2(C) = 17963 Pw2 = 21080, C1r = 7550, C1p = 850, qM2 = 23560.80, qÆ1 = 1126, U3(C) = 18148 The result shows that the OEM, as the leader of the agent would choose option M2. The agent as the follower of the manufacturer and the leader of the customer, would choose option A1. And the customer has to choose option C3, which makes sense. In other words, the obtain sub-perfect-equilibrium (SPE), (M2, A1, C3) is tangible. Fig.4. Domination of the OEM’s options relative to reliability parameter. Fig.5. Domination of the Agent’s options relative to reliability parameter.

Numerical Example. The Stackelberg models produce the following optimal values for our decision variables based on equation (18) and (25): α 𝛼 = 3, Pw1 𝑃w1 = 21170, Pa 𝑃𝑎 = 1550, qM1 𝜌𝑀1 = 23248.59, qÆ2 𝜌𝐴2 = 266, U1(C𝑈1(𝐶) = 0 Pw1 𝑃w1 = 21170, C3r 𝐶3𝑟 = 700, C3p 𝐶3𝑝 = 800, qM1 𝜌𝑀1 = 23248.59, qÆ3 𝜌𝐴3 = 102, U2(C𝑈2(𝐶) = 17963 Pw2 𝑃w2 = 21080, C1r 𝐶1𝑟 = 7550, C1p 𝐶1𝑝 = 850, qM2 𝜌𝑀2 = 23560.80, qÆ1 𝜌𝐴1 = 1126, U3(C𝑈3(𝐶) = 18148 The result shows that the OEM, as the leader of the agent would choose option M2. The agent as the follower of the manufacturer and the leader of the customer, would choose option A1. And the customer has to choose option C3, which makes sense. In other words, the obtain sub-perfect-equilibrium (SPE), (M2, A1, C3) is tangible. Fig.4. Domination of the OEM’s options relative to reliability parameter. Fig.5. Domination of the Agent’s options relative to reliability parameter.