Kimms, Alf; Drechsel, Julia:
Cost Sharing under Uncertainty: An Algorithmic Approach to Cooperative Interval-Valued Games
In: Business Research, Vol. 2009, No. 2, pp. 206 - 213
2009article/chapter in journal
EconomicsMercator School of Management - Faculty of Business AdministrationScientific institutes » Centre for Logistics and Traffic (ZLV)
Title in English:
Cost Sharing under Uncertainty: An Algorithmic Approach to Cooperative Interval-Valued Games
Author:
Kimms, AlfUDE
LSF ID
15707
Other
connected with university
;
Drechsel, Julia
Year of publication:
2009
Language of text:
English
Keyword, Topic:
cooperative game theory ; core ; interval-valued games ; mathematical programming ; lot-sizing

Abstract in English:

Recently, Branzei, Dimitrov, and Tijs (2003) introduced cooperative interval-valued games. Among other insights, the notion of an interval core has been coined and proposed as a solution concept for interval-valued games. In this paper we will present a general mathematical programming algorithm which can be applied to find an element in the interval core. As an example, we discuss lot sizing with uncertain demand to provide an application for interval-valued games and to demonstrate how interval core elements can be computed. Also, we reveal that pitfalls exist if interval core elements are computed in a straightforward manner by considering the interval borders separately.