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Cooperative Game Theory and the Cumulative Opportunity Cost Method of Profit Allocation to Realize Φ Stability

Yasuhiro Monden

Chapter 17 in Economics of Incentives for Inter-Firm Innovation, 2018, pp 411-434 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The following sections are included:Theme of This ChapterBasic Concepts of Cooperative Game Theory Surrounding the “Core” ConceptMoriarity’s Allocation Method: Its Merit and Drawbacks“Φ Stability” of the Admissible CoalitionThe First Step of the Cumulative Opportunity Cost Method: Ranking of Each Division According to the Degree of Profit ContributionSimple Illustrated Case of the Cumulative Opportunity Cost MethodProfit Allocation According to the Cumulative Opportunity Cost of Each DivisionConclusionEndnotesAppendix to Chapter 17: Mathematical Proof of Satisfying the Φ Stability Conditions in the Cumulative Opportunity Cost Method**This appendix is a reproduction of Monden (1989a), with minor revisions.

Keywords: Open Innovation; Open Network Organization; Incentive Price System; Inter-Firm Collaboration; Supply Chain Managment (search for similar items in EconPapers)
JEL-codes: L10 (search for similar items in EconPapers)
Date: 2018
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