Cooperative games and cost allocation problems

Cooperative Benefit and Cost Games under Fairness Concerns

Solution concepts in cooperative games are based on either cost games or benefit games. Although cost games and benefit games are strategically equivalent, that is not the case in general for solution concepts. Motivated by this important observation, a new property called invariance property with respect to benefit/cost allocation is introduced in this paper. Since such a property can be regar...

Allocation processes in cooperative games

In this paper we attempt to introduce dynamics into the theory of cooperative games. A solution of the game is reached through an allocation process. At each stage of the allocation process of a cooperative game a budget of fixed size is distributed among the players. In the first part of this note we study a type of process that, at any stage, endows the budget to a player whose contribution t...

Transmission cost allocation based on cooperative game theory

Cooperative Transportation Planning and Cost Allocation

A freight forwarder may consolidate its goods transportations in order to achieve a more efficient operation. When goods transportations are consolidated, they may reduce operational costs, e.g. labor and fuel. This can be further improved if a number of freight forwarders cooperate and consolidate their collective goods transportations, i.e. it is a cooperation between competitors, a coopetiti...

Algorithmic Cost Allocation Games: Theory and Applications

Due to economy of scale, it is suggested that individual users, in order to save costs, should join a cooperation rather than acting on their own. However, a challenge for individuals when cooperating with others is that every member of the cooperation has to agree on how to allocate the common costs among members, otherwise the cooperation cannot be realised. Taken this issue into account, we ...