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Cost allocation in combinatorial optimization games

Marinakis Ioannis, Mygdalas Athanasios, Pardalos, Panos M., 1954-

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Year 2008
Type of Item Book Chapter
Bibliographic Citation Y. Marinakis, A. Migdalas and P.M. Pardalos, “Cost allocation in combinatorial optimization games”, in Pareto Optimality, Game Theory and Equilibria, vol. 17, Springer Optimization and Its Applications, A. Chinchuluun, P.M. Pardalos, A. Migdalas, L. Pitsoulis, Eds., New York: Springer, 2008, pp. 217-247. doi: 10.1007/978-0-387-77247-9_9
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Cooperative game theory is concerned primarily with groups of players who coordinate their actions and pool their winnings. One of the main concerns is how to divide the extra earnings (or cost savings) among the members of the coalitions. Thus a number of solution concepts for cooperative games have been proposed. In this chapter, a selection of basic notions and solution concepts for cooperative games are presented and analyzed in detail. The paper is particularly concerned with cost allocation methods in problems that arise from the field of combinatorial (discrete) optimization.