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Customer and Cost Sharing in a Jackson Network

Judith Timmer and Werner Scheinhardt ()
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Judith Timmer: Stochastic Operations Research Group, Department of Applied Mathematics, University of Twente, P. O. Box 217, 7500 AE Enschede, The Netherlands
Werner Scheinhardt: Stochastic Operations Research Group, Department of Applied Mathematics, University of Twente, P. O. Box 217, 7500 AE Enschede, The Netherlands

International Game Theory Review (IGTR), 2018, vol. 20, issue 03, 1-10

Abstract: In this paper we consider a Jackson network of independent service stations. To improve upon the total expected queue length, the stations may redistribute the total arrival rate of customers over all queues. We investigate this situation by means of arrival rate games. These are cooperative TU cost games in which the stations are the players and the total cost of a coalition is linear in the total expected queue length. We show that these games are totally balanced; cooperation is beneficial to all stations. Further, we provide a tailor-made cost allocation rule that belongs to the core of the game.

Keywords: Jackson network; customer sharing; cooperative game; cost allocation (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0219198918500020

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