We introduce the class of Obligation rules for minimum cost spanning tree situations.The main result of this paper is that such rules are cost monotonic and induce also population monotonic allocation schemes.Another characteristic of Obligation rules is that they assign to a minimum cost...

This study considers a simple newsvendor situation that consists of n retailers, all selling the same item with common purchasing costs and common selling prices.Groups of retailers might increase their expected joint profit by inventory centralization, which means that they make a joint order...

In this paper, we introduce a general framework for situations with decision making under uncertainty and cooperation possibilities. This framework is based upon a two stage stochastic programming approach. We show that under relatively mild assumptions the cooperative games associated with...

An assignment situation can be considered as a two-sided market consisting of two disjoint sets of objects.A non-negative reward matrix describes the profit if an object of one group is assigned to an object of the other group. Assuming that each object is owned by a different agent, Shapley and...

Abstract: In this paper two cost sharing solutions for minimum cost spanning tree problems are introduced, the degree adjusted folk solution and the cost adjusted folk solution. These solutions overcome the problem of the classical reductionist folk solution as they have considerable strict...

We study the relation between the fuzzy core and balancedness for fuzzy games. For regular games, this relation has been studied by Bondareva (1963) and Shapley (1967). First, we gain insight in this relation when we analyse situations where the fuzzy game is continuous. Our main result shows...

The aim of this paper is to introduce and axiomatically characterize the P-value as a rule to solve the cost sharing problem in minimum cost spanning tree (mcst) situations.The P-value is related to the Kruskal algorithm for finding an mcst.Moreover, the P-value leads to a core allocation of the...

In this paper we propose a new rule to allocate risk capital to portfolios or divisions within a firm. Specifically, we determine the capital allocation that minimizes the excesses of sets of portfolios in lexicographical sense. The excess of a set of portfolios is defined as the expected loss...

We study the model of link formation that was introduced by Aumann and Myerson (1988) and focus on symmetric convex games with transferable utilities. We show that with at most five players the full cooperation structure results according to a subgame perfect Nash equilibrium.Moreover, if the...

In this paper we generalise marginal vectors and permutational convexity.We show that if a game is generalised permutationally convex, then the corresponding generalised marginal vector is a core element.Furthermore we refine the concept of permutational convexity and show that this refinement...