Avoiding unfairness of Owen allocations in linear production processes

Federico Perea, Justo Puerto and Francisco R. Fernández

European Journal of Operational Research, 2012, vol. 220, issue 1, 125-131

Abstract: This paper deals with cooperation situations in linear production problems in which a set of goods are to be produced from a set of resources so that a certain benefit function is maximized, assuming that resources not used in the production plan have no value by themselves. The Owen set is a well-known solution rule for the class of linear production processes. Despite their stability properties, Owen allocations might give null payoff to players that are necessary for optimal production plans. This paper shows that, in general, the aforementioned drawback cannot be avoided allowing only allocations within the core of the cooperative game associated to the original linear production process, and therefore a new solution set named EOwen is introduced. For any player whose resources are needed in at least one optimal production plan, the EOwen set contains at least one allocation that assigns a strictly positive payoff to such player.

Keywords: Cooperative games; Linear production games; Allocations (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:220:y:2012:i:1:p:125-131

DOI: 10.1016/j.ejor.2012.01.013

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