scholarly journals Optimal Order Strategy in Uncertain Demands with Free Shipping Option

2014 ◽  
Vol 2014 ◽  
pp. 1-6 ◽  
Author(s):  
Qing-Chun Meng ◽  
Teng Zhang ◽  
Ming Li ◽  
Xiao-Xia Rong
Keyword(s):  
Game Theory ◽  
Cooperative Game Theory ◽  
Uncertain Data ◽  
Optimal Solution ◽  
Optimal Order ◽  
Random Data ◽  
The Core ◽  
Distributional Information ◽  
Linear Decision Rule ◽  
Free Shipping

Free shipping with conditions has become one of the most effective marketing tools; more and more companies especially e-business companies prefer to offer free shipping to buyers whenever their orders exceed the minimum quantity specified by them. But in practice, the demands of buyers are uncertain, which are affected by weather, season, and many other factors. Firstly, we model the centralization ordering problem of retailers who face stochastic demands when suppliers offer free shipping, in which limited distributional information such as known mean, support, and some deviation measures of the random data is needed only. Then, based on the linear decision rule mainly for stochastic programming, we analyze the optimal order strategies of retailers and discuss the approximate solution. Further, we present the core allocation between all retailers via dual and cooperative game theory. The existence of core shows that each retailer is pleased to cooperate with others in the centralization problem. Finally, a numerical example is implemented to discuss how uncertain data and parameters affect the optimal solution.

SOCIAL CHOICE AND COOPERATIVE GAME THEORY: VOTING GAMES AS SOCIAL AGGREGATION FUNCTIONS

2013 ◽  
Vol 15 (03) ◽  
pp. 1340012 ◽  
Author(s):  
MATHIEU MARTIN ◽  
MAURICE SALLES
Keyword(s):  
Game Theory ◽  
Social Choice ◽  
Cooperative Game ◽  
Topological Structure ◽  
Cooperative Game Theory ◽  
The Core ◽  
Individual Preferences ◽  
Voting Games ◽  
Aggregation Functions ◽  
Positive Results

We consider voting games as procedures to aggregate individual preferences. We survey positive results on the nonemptiness of the core of voting games and explore other solutions concepts that are basic supersets of the core such as Rubinstein's stability set and two types of uncovered sets. We consider cases where the sets of alternatives are 'ordinary' sets, finite sets and infinite sets with possibly a topological structure.

scholarly journals Modeling the relationship between network operators and venue owners in public Wi-Fi deployment using non-cooperative game theory

2019 ◽  
Vol 2019 (1) ◽  
Author(s):  
Jonathan Spruytte ◽  
Amal Benhamiche ◽  
Matthieu Chardy ◽  
Sofie Verbrugge ◽  
Didier Colle
Keyword(s):  
Game Theory ◽  
Cooperative Game ◽  
Cooperative Game Theory ◽  
Real Life ◽  
Optimal Solution ◽  
Mobile Network ◽  
Data Traffic ◽  
Pricing Models ◽  
Revenue Models ◽  
Roll Out

Abstract Wireless data demands keep rising at a fast rate. In 2016, Cisco measured a global mobile data traffic volume of 7.2 Exabytes per month and projected a growth to 49 Exabytes per month in 2021. Wi-Fi plays an important role in this as well. Up to 60% of the total mobile traffic was off-loaded via Wi-Fi (and femtocells) in 2016. This is further expected to increase to 63% in 2021. In this publication, we look into the roll-out of public Wi-Fi networks, public meaning in a public or semi-public place (pubs, restaurants, sport stadiums, etc.). More concretely we look into the collaboration between two parties, a technical party and a venue owner, for the roll-out of a new Wi-Fi network. The technical party is interested in reducing load on its mobile network and generating additional direct revenues, while the venue owner wants to improve the attractiveness of the venue and consequentially generate additional indirect revenues. Three Wi-Fi pricing models are considered: entirely free, slow access with ads or fast access via paid access (freemium), and paid access only (premium). The technical party prefers a premium model with high direct revenues, the venue owner a free/freemium model which is attractive to its customers, meaning both parties have conflicting interests. This conflict has been modeled using non-cooperative game theory incorporating detailed cost and revenue models for all three Wi-Fi pricing models. The initial outcome of the game is a premium Wi-Fi network, which is not the optimal solution from an outsider’s perspective as a freemium network yields highest total payoffs. By introducing an additional compensation scheme which corresponds with negotiation in real life, the outcome of the game is steered toward a freemium solution.

scholarly journals Collusive Behavior of Bidders in English Auctions: A Cooperative Game Theoretic Analysis

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Takayuki Oishi
Keyword(s):  
Game Theory ◽  
Cooperative Game ◽  
Shapley Value ◽  
Cooperative Game Theory ◽  
Theoretic Analysis ◽  
Single Object ◽  
English Auctions ◽  
Game Theoretic Analysis ◽  
The Core ◽  
Game Theoretic

In practice, collusive bidders' rings in English auctions with a single object frequently distribute collusive gains among ring members via sequences of re-auctions called knockouts. The present paper introduces a model of sequences of knockouts under the situation in which each bidder has information on his evaluation and the order of the evaluations of all bidders for the object. The present paper examines the distributive function of sequences of knockouts from the viewpoint of cooperative game theory. Each sequence of knockouts yields an element of the core, two particular sequences yielding the Shapley value and the nucleolus respectively. The present paper highlights the sequence of knockouts yielding the nucleolus.

scholarly journals Cooperative Game Theory and its Insurance Applications

1991 ◽  
Vol 21 (1) ◽  
pp. 17-40 ◽  
Author(s):  
Jean Lemaire
Keyword(s):  
Game Theory ◽  
Characteristic Function ◽  
Cooperative Game ◽  
Shapley Value ◽  
Cooperative Game Theory ◽  
Elementary Level ◽  
Stable Sets ◽  
Survey Paper ◽  
The Core ◽  
Basic Concepts

AbstractThis survey paper presents the basic concepts of cooperative game theory, at an elementary level. Five examples, including three insurance applications, are progressively developed throughout the paper. The characteristic function, the core, the stable sets, the Shapley value, the Nash and Kalai-Smorodinsky solutions are defined and computed for the different examples.

scholarly journals Is There an Optimal Strategic Oil Reserve for Each Country? A Study Based on the Game Theory

2014 ◽  
Vol 7 (1) ◽  
pp. 69-72
Author(s):  
Junan Yang ◽  
Rong-Gang Cong
Keyword(s):  
Game Theory ◽  
Cooperative Game ◽  
Cooperative Game Theory ◽  
Free Rider ◽  
Theory And Practice ◽  
Coalition Game ◽  
Oil Reserves ◽  
The Core ◽  
The Game Theory ◽  
Core Solution

In generally, there is a phenomenon of “free rider” in the establishment of national oil reserves for different countries, which means that they have the tendency of underestimating the strategic oil reserves. This paper attempts to explain this phenomenon from the perspective of non-cooperative game theory. It also analyzes the establishment of strategic oil reserve among different countries based on the coalition game theory and presents the core solution for it. The results show that based on a certain constraint mechanism, it is feasible for different countries to establish their own suitable strategic oil reserves in theory and practice.

APPLICATIONS OF GAME THEORY TO ECONOMICS

2013 ◽  
Vol 15 (03) ◽  
pp. 1340011 ◽  
Author(s):  
GUILLERMO OWEN
Keyword(s):  
Game Theory ◽  
Cooperative Game ◽  
Shapley Value ◽  
Cooperative Game Theory ◽  
The Core ◽  
The Shapley Value

We look at the basic applications of cooperative game theory to economic situations. These include bargaining and cooperative equilibria, especially as the number of players increases without bound. The core and the Shapley value are the fundamental tools for these applications. We consider the relation between these two concepts. A comprehensive bibliography of work published over the last decade is included.

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