Algorithm Benchmarks

3-Legged Zebras, Webbings & the Benchmarks:
The Simple Job of the Algorithm

Evolution and market conditions have much in common. Although we humans originally originate from the water we do not have any webbings. They wouldn’t serve any purpose for the life on shore. For humans, the characteristic of “having webbings” is therefore senseless. On the other hand, three-legged zebras are an easier prey for lions than their four-legged conspecific. Hence, for zebras the characteristic “four-legged” does make sense.

The same goes for product characteristics. Certain characteristics can’t establish themselves in the market, others can. Consumers determine market evolution by making purchase decisions. They decide who survives and who vanishes. They decide whether a product characteristic makes sense or not. They decide how much value a characteristic has.

This is exactly what the algorithm establishes and its parameters describe this knowledge. The characteristic “four-legged” in regard to the zebra would hold a high parameter since most zebras obviously have four legs. Comparatively, the characteristic “has webbings” in regard to a human being would hold a low benchmark value due to the rarity of this scenario.

Since the information of whether a product is good or bad is technically already given in the market, the algorithm represents a direct and unbiased feedback of all consumers. Therefore, the algorithm is merely a tool that makes this information visible-very simple!

Der Algorithmus berechnet Kennwerte für Produkteigenschaften
The algorythm calculates benchmarks for product characteristics.


The Emphasis

Products can be sorted on the basis of the determined benchmarks. This sorting decides on the respective grade.

The emphasis follows the suggestions of the EU (ECTS-system), or the IHK Bavaria which is used to evaluate students and interns. It works as follows:

The first 25% receive the grade “very good”.
The second 25% “good”, etc.

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