Cooperative advertising is a cost-sharing mechanism in which a part of retailers' advertising investments are financed by the manufacturers. In recent years, investment among advertising options has become a difficult marketing issue. In this paper, the cooperative advertising problem with advertising options is investigated in a two-period horizon in which the market share in the second period...

We propose an intermediation core for an economy that is explicit in how traders organize themselves into trade cooperatives (intermediaries) and how trade between them gets carried out. The intermediation core allocations are closely related to equilibrium allocations of a non-cooperative intermediation game in Townsend (1983). We show that the intermediation core contains all subgame-perfect ...

Game Theory pioneers J. von Neumann and O. Morgenstern gave most of their attention to the cooperative side of the subject. But cooperative game theory has had relatively little effect on economics. In this essay, I suggest why that might be and what is needed for cooperative theory to become more relevant to economics. Cooperative game theory is the part of game theory that pertains when playe...

Cooperative advertising is an agreement between a manufacturer and a retailer to share advertising cost at the local level. Previous studies have not investigated cooperative advertising for complementary products and their main focus was only on one good. In this paper, we study a two-echelon supply chain consisting of one manufacturer and one retailer with two complementary goods. The demand ...

This paper proposes a decision-making framework for Connected Autonomous Vehicle interactions. It provides and justifies algorithms strategic selection of control references cruising, platooning overtaking. The algorithm is based on the trade-off between energy consumption time. consequent cooperation opportunities originating from agent heterogeneity are captured by game-theoretic cooperative-...

In this paper, a novel methodology is proposed to solve a cooperative multi-depot vehicle routing problem. We establish a mathematical model for multi-owner VRP in which each owner (i.e. player) manages single or multiple depots. The basic idea consists of offering an option that owners cooperatively manage the VRP to save their costs. We present cooperative game theory techniques for cost savi...

We develop a dynamic game model of a two-country monetary union to study strategic interactions between macroeconomic policy-makers facing adaptive inflationary expectations. In this union, governments of participating countries pursue national goals when deciding about fiscal policies, whereas the common central bank’s monetary policy aims at union-wide objectives. For a symmetric demand shock...

In this paper, tools from cooperative game theory are combined with predictive control to perform the partitioning of large-scale systems (LSS). More specifically, a partitioning algorithm based on the Shapley value to rank the links by using a cooperative cost game is proposed. To this end, coalitional model predictive control, which offers a trade-off between control performance and communica...