We deal with multi-agent Markov Decision Processes (MDP’s) in which cooperation among players is allowed. We find a cooperative payoff distribution procedure (MDP-CPDP) that distributes in the course of the game the payoff that players would earn in the long run game. We show under which conditions such a MDP-CPDP fulfills a time consistency property, contents greedy players, and strengthen the...

We consider a model where a group of manufacturers outsource finishing operations to a single third-party. Depending on the demand for her capacity, the third-party announces daily booking costs that may take on one of two prices regular or peak price. Each manufacturer books chunks of production capacity (called manufacturing windows) so as to optimize his booking and tardiness costs subject t...

We analyze the core of a cooperative Cournot game. We assume that when contemplating a deviation, the members of a coalition assign positive probability over all possible coalition structures that the nonmembers can form. We show that when the number of firms in the market is sufficiently large then the core of the underlying cooperative game is non-empty. Moreover, we show that the core of our...

This paper investigates core stability of cooperative (TU) games via a fuzzy extension of the totally balanced cover of a cooperative game. The stability of the core of the fuzzy extension of a game, the concave extension, is shown to reflect the core stability of the original game and vice versa. Stability of the core is then shown to be equivalent to the existence of an equilibrium of a certa...

The objective of the paper is to study how wholesale price and revenue sharing contracts affect operations and marketing decisions in a supply chain under different dynamic informational structures. We suggest a differential game model of a supply chain consisting of a manufacturer and a single retailer that agree on the contract parameters at the outset of the game. The model includes key oper...

Due to its role in the identification of inefficient branches and deciding the consistency of their activities, evaluating the performance of a bankchr('39')s branches is one of the most important decisions in the field of development and regulation of branch network. In this paper, the satisfactory functions based on game theory strategies have been utilized in order to evaluate the individual...

Today due to increasing and evolving of electrical grids, the optimal and profitable energy production is among producers' major concerns. Thus, conventional ways of production and trading energy are being replaced by modern economical procedures. In addition, distributed energy resources (DERs) in form of renewable and conventional resources as well as responsive loads play an important role i...

Channel coordination in search advertising is an important but complicated managerial decision for both manufacturers and retailers. A manufacturer can sponsor retailers to advertise his products while at the same time compete with them in position auctions. We model a manufacturer and retailers’ cooperation and intra-brand competition in advertising, as well as inter-brand competition with oth...