scholarly journals Utility Perception in System Dynamics Models

Systems ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 37 ◽  
Author(s):  
Saeed Langarudi ◽  
Isa Bar-On
Keyword(s):  
System Dynamics ◽  
Policy Implications ◽  
Medium Size ◽  
Smoothing Function ◽  
Alternative Formulation ◽  
Health Records ◽  
Simple Theoretical Model ◽  
Individual System ◽  
Utility Perception ◽  
Dynamics Models

The utility perceived by individuals is believed to be different from the utility experienced by that individual. System dynamicists implicitly categorize this phenomenon as a form of bounded rationality, and traditionally employ an exponential smoothing function to capture it. We challenge this generalization by testing it against an alternative formulation of utility perception that is suggested by modern theories of behavioral sciences. In particular, the traditional smoothing formulation is compared with the peak–end rule in a simple theoretical model as well as in a medium-size model of electronic health records implementation. Experimentation with the models reveals that the way in which utility perception is formulated is important, and is likely to affect behavior and policy implications of system dynamics models.

scholarly journals Utility Perception in System Dynamics Models

2018 ◽  
Author(s):  
Saeed P. Langarudi ◽  
Isa Bar-On
Keyword(s):  
System Dynamics ◽  
Policy Implications ◽  
Medium Size ◽  
Smoothing Function ◽  
Alternative Formulation ◽  
Health Record ◽  
Simple Theoretical Model ◽  
Individual System ◽  
Utility Perception ◽  
Dynamics Models

Utility perceived by individuals is believed to be different from the utility experienced by that individual. System dynamicists implicitly categorize this phenomenon as a form of bounded rationality and traditionally employ a simple smoothing function to capture it. We challenge this generalization by testing it against an alternative formulation of utility perception that is suggested by modern theories of behavioral economics. In particular, the traditional smoothing formulation is compared with the peak-end rule in a simple theoretical model as well as in a medium-size model of electronic health record implementation. Experimentation with the models reveals that the way utility perception is formulated is important and might affect behavior and policy implications of system dynamics models.

The effect of export tax rebates on product quality: evidence from China's agricultural product processing industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yue Liang ◽  
Jingqi Dang ◽  
Shuai Chen
Keyword(s):  
Quality Improvement ◽  
Product Quality ◽  
Policy Implications ◽  
Medium Size ◽  
Agricultural Product ◽  
Firm Innovation ◽  
Processing Industry ◽  
Content Type ◽  
Export Tax

PurposeThis study aims to establish the linkage among export tax rebate (ETR), firm innovation and product quality of Chinese agricultural product processing industry (APPI), so that more targeted policy implications can be discussed.Design/methodology/approachUsing highly disaggregated firm-product-destination-level data through 2001 to 2013 of Chinese APPI, this study employs a two-way fixed effects specification to establish the linkage between ETR and product quality, while the mediational model is adopted to examine potential mechanisms.FindingsBaseline estimates show that a 1% increase in ETR rate leads to a significant increase in the product quality of APPI by 0.12% on the whole. However, there is a nonlinear, inverse-U shaped relationship between ETR and product quality, and the optimal inflection point occurs when ERT rate equals 0.15. Mechanism analyses show that firm innovation is an important impact channel, which explains 9.8% of quality improvement induced by raising ETR. Further heterogeneous analyses reveal both the total effects of ETR on product quality and the mediation effects of innovation are dominated by young SMEs (small and medium-size enterprises).Practical implicationsAuthorities can promote the innovation and then product quality improvement of young SMEs by moderately increasing ETR rate. To ensure ETR more effective in improving quality, it is necessary for the government to encourage innovation. Authorities can reduce the risk of innovation failure for low-tech firms by increasing R&D subsidies, while ensuring innovation returns for high-tech firms in combination with stronger intellectual property protection.Originality/valueFirst, this is one of the earlier studies to explore the relationship between ETR and product quality specifically for Chinese APPI. Second, we show firm innovation as an important mediator so that policies aim at raising ETR rates are eventually beneficial to product quality. Third, using the highly disaggregated data, we allow ETR rate to vary across different products, which is an improvement in the accuracy of previous literature. Finally, our research provides additional empirical evidence for revealing the micro-mechanism of ETR affecting firm behaviors.

With the Backlash Dynamics Simulation of a Crank-Slider Mechanism of the Internal Combustion Engine

2012 ◽  
Vol 215-216 ◽  
pp. 1081-1084
Author(s):  
Shao Jun Bo ◽  
Kui Ji ◽  
Juan Tian
Keyword(s):  
System Dynamics ◽  
Combustion Engine ◽  
Dynamics Simulation ◽  
Kinematic Pair ◽  
Body System ◽  
Nonlinear Characteristics ◽  
Preliminary Study ◽  
Multi Body ◽  
Dynamics Models ◽  
Crank Mechanism

On the basis of flexible multi-body system dynamics theory, we built flexible multi-body system dynamics models which include a backlash, and to a slider-crank mechanism as the research object, we made a preliminary study on the effect on the flexible components and the backlash of the kinematic pair on mechanical system dynamics characteristics. To consider the backlash of the kinematic pair and component of flexible space can show a preliminary research on the dynamic simulation, and focus on the backlash, friction and gravity field to influence in the dynamic characteristics of the system. The simulation results show that, due to the existence of backlash made the two components frequent collision in the process of the stretching, clearance, flexible and friction are closed, make the system nonlinear characteristics increased.

A System Dynamics Model for Cocaine Prevalence Estimation and Trend Projection

1993 ◽  
Vol 23 (2) ◽  
pp. 251-279 ◽  
Author(s):  
Jack B. Homer
Keyword(s):  
System Dynamics ◽  
Crack Cocaine ◽  
Simulation Models ◽  
Policy Implications ◽  
Dynamics Simulation ◽  
Prevalence Estimation ◽  
National Indicator ◽  
Sensitivity Tests ◽  
Indicator Data ◽  
Alternative Scenarios

In this article the author presents a system dynamics simulation model that reproduces a variety of national indicator data reflecting cocaine use and supply over a fifteen-year period and provides detailed estimates of underlying prevalence. Sensitivity tests are conducted that clarify observed trends such as growth in the compulsive use of crack cocaine and decline in the casual use of cocaine powder. Alternative scenarios with possible policy implications are simulated and projected through the year 2002 and the results are assessed. Researchers and decisionmakers hoping to understand and anticipate the dynamics of illicit drug use may benefit from simulation models that are realistic in detail and broad in scope.

Sign in / Sign up

Export Citation Format

Share Document