Design for contract mechanism of acceptance sampling plans based on two-person game

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Traditionally, acceptance sampling plans are two-person decision process, which is used to check whether the reliability of the producer's product meets the requirements of the consumer. However, during the two-person decision process, the producer, as a rational person, tends to use less resources for the sampling plans to save the costs and promote the acceptance of the product, while the consumer who also acts as a rational person tends to use more so as to test the reliability of the product as realistically as possible and reduce the loss caused by defective product. Therefore, the conflict of interest between the producer and consumer exists in determining the acceptance sampling strategies. In this paper, firstly, the contract mechanism for acceptance sampling plans is proposed for the conflict of interest between them, and then the two-person game model between the producer and the consumer is constructed from the three dimensions including game participants, strategy spaces and payoff functions to obtain the acceptance sampling strategies conforming to the results of Nash equilibrium. Finally, the numerical case is given to show the balance of acceptance resources and the relative optimality of costs after the game, which solves the problem of conflicts of interest in the acceptance sampling plans.

Original languageEnglish
Title of host publication30th European Safety and Reliability Conference, ESREL 2020 and 15th Probabilistic Safety Assessment and Management Conference, PSAM 2020
EditorsPiero Baraldi, Francesco Di Maio, Enrico Zio
PublisherResearch Publishing Services
Pages4430-4437
Number of pages8
ISBN (Electronic)9789811485930
StatePublished - 2020
Event30th European Safety and Reliability Conference, ESREL 2020 and 15th Probabilistic Safety Assessment and Management Conference, PSAM 2020 - Venice, Virtual, Italy
Duration: 1 Nov 20205 Nov 2020

Publication series

Name30th European Safety and Reliability Conference, ESREL 2020 and 15th Probabilistic Safety Assessment and Management Conference, PSAM 2020

Conference

Conference30th European Safety and Reliability Conference, ESREL 2020 and 15th Probabilistic Safety Assessment and Management Conference, PSAM 2020
Country/TerritoryItaly
CityVenice, Virtual
Period1/11/205/11/20

Keywords

  • Acceptance sampling plans
  • Conflict of interest
  • Contract mechanism
  • Nash equilibrium
  • Two-person game

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