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Proportional egalitarian core solution for profit allocation games with an application to collaborative transportation planning

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  • Bo Dai
  • Haoxun Chen

Abstract

For a profit allocation game, one key issue is to find a fair allocation of profit among its players. In this paper, a proportional egalitarian core solution is proposed, which defines in the core of a game an allocation that takes account of each player's contribution to the grand coalition. This solution concept generalises the egalitarian core solution for cooperative games. To efficiently compute the new solution, a row generation method is developed. The applicability of this new solution concept and the row generation method is demonstrated by an application to a carrier collaboration problem with numerical experiment results. [Received 12 November 2012; Revised 30 July 2013; Accepted 08 September 2013]

Suggested Citation

  • Bo Dai & Haoxun Chen, 2015. "Proportional egalitarian core solution for profit allocation games with an application to collaborative transportation planning," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 9(1), pages 53-76.
    • Handle: RePEc:ids:eujine:v:9:y:2015:i:1:p:53-76
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    Citations

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    Cited by:

    1. Rasulkhani, Saeid & Chow, Joseph Y.J., 2019. "Route-cost-assignment with joint user and operator behavior as a many-to-one stable matching assignment game," Transportation Research Part B: Methodological, Elsevier, vol. 124(C), pages 60-81.
    2. Bo Dai & Fenfen Li & Yunchong Liu, 2022. "A Profit Allocation Mechanism for Customer-to-Manufacturer Platform in e-Commercial Business," SAGE Open, , vol. 12(2), pages 21582440221, May.
    3. Ching-Hui Tang, 2018. "Two-stage stochastic modeling of transportation outsourcing plans for transshipment centers," 4OR, Springer, vol. 16(1), pages 67-94, March.
    4. van Zon, M. & Spliet, R. & van den Heuvel, W., 2021. "The effect of algorithm capabilities on cooperative games," Econometric Institute Research Papers EI2021-02, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    5. Mathijs van Zon & Remy Spliet & Wilco van den Heuvel, 2021. "The Joint Network Vehicle Routing Game," Transportation Science, INFORMS, vol. 55(1), pages 179-195, 1-2.
    6. Li, Yuan & Chen, Haoxun & Prins, Christian, 2016. "Adaptive large neighborhood search for the pickup and delivery problem with time windows, profits, and reserved requests," European Journal of Operational Research, Elsevier, vol. 252(1), pages 27-38.

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