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Customer and Cost Sharing in a Jackson Network

Author

Listed:
  • 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)

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.

Suggested Citation

  • Judith Timmer & Werner Scheinhardt, 2018. "Customer and Cost Sharing in a Jackson Network," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-10, September.
  • Handle: RePEc:wsi:igtrxx:v:20:y:2018:i:03:n:s0219198918500020
    DOI: 10.1142/S0219198918500020
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    References listed on IDEAS

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    1. Lloyd S. Shapley, 1967. "On balanced sets and cores," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(4), pages 453-460.
    2. Shapley, Lloyd S. & Shubik, Martin, 1969. "On market games," Journal of Economic Theory, Elsevier, vol. 1(1), pages 9-25, June.
    3. Frank Karsten & Marco Slikker & Geert-Jan van Houtum, 2015. "Resource Pooling and Cost Allocation Among Independent Service Providers," Operations Research, INFORMS, vol. 63(2), pages 476-488, April.
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    Cited by:

    1. Pramod C. Mane & Nagarajan Krishnamurthy & Kapil Ahuja, 2019. "Formation of Stable and Efficient Social Storage Cloud," Games, MDPI, vol. 10(4), pages 1-17, November.
    2. Corine M. Laan & Judith Timmer & Richard J. Boucherie, 2021. "Non-cooperative queueing games on a network of single server queues," Queueing Systems: Theory and Applications, Springer, vol. 97(3), pages 279-301, April.

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