A core-allocation family for generalized holding cost games

Ana Meca ()

Mathematical Methods of Operations Research, 2007, vol. 65, issue 3, 499-517

Abstract: Inventory situations, introduced in Meca et al. (Eur J Oper Res 156: 127–139, 2004), study how a collective of firms can minimize its joint inventory cost by means of co-operation. Depending on the information revealed by the individual firms, they analyze two related cooperative TU games: inventory cost games and holding cost games, and focus on proportional division mechanisms to share the joint cost. In this paper we introduce a new class of inventory games: generalized holding cost games, which extends the class of holding cost games. It turns out that generalized holding cost games are totally balanced.We then focus on the study of a core-allocation family which is called N-rational solution family.It is proved that a particular relation of inclusion exists between the former and the core. In addition, an N-rational solution called minimum square proportional ruleis studied. Copyright Springer-Verlag 2007

Keywords: Generalized holding cost games; Core-allocations; Minimum square proportional rule; Inventory situations; Cooperative games; 91A12; 90B05 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s00186-006-0131-z

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