Managing Interconnected Production in a Dynamic Network A Fair Gain-sharing Collaborative Solution
Abstract
This paper presents an analysis on the optimal management of interconnected production networks Collaboration represents the best possibility of achieving a group optimal solution that enhances payoffs of the companies in a network. Since companies are not identical, some of them may capture substantially less gain through interconnection than their contributions to other providers. An optimality principle in gain-sharing that reflects the contributions of the participating companies is needed. This paper developed a novel dynamic fair gain-sharing solution for interconnected production networks that fulfills the requirements of a sustainable scheme — individual rationality, group optimality, time consistency and fair-sharing principle.
Keywords:
Network dynamic game, Pareto efficient collaboration, Gainsharing principle
Downloads
References
Allen, B. (2023). Flipping the intuition for games on dynamic networks. Nature Computational Science, 3(9), 737–738. https://doi.org/10.1038/s43588-023-00513-3
Grüner, S., Radmacher, F. G., Thomas, W. (2013). Connectivity games over dynamic networks. Theoretical Computer Science, 493, 46–65. https://doi.org/10.1016/j.tcs.2012.12.001
Mazalov, V., Chirkova, J. (2019). Networking Games. San Diego: Elsevier Science & Technology.
Menache, I., Ozdaglar, A. E. (2011). Network games: theory, models, and dynamics. Morgan & Claypool.
Miles, A. L., Cavaliere, M. (2022). Cooperation dynamics in dynamical networks with history-based decisions. PloS One, 17(11), e0275909–e0275909. https://doi.org/10.1371/journal.pone.0275909
Pei, S., Cressman, R., Zhang, B. (2022). Dynamic Games on Networks with Heterogeneous Players. Available at SSRN: https://ssrn.com/abstract=4217352 or http://dx.doi.org/10.2139/ssrn.4217352
Pei, S., Cressman, R., Zhang, B. (2024). Dynamic games on arbitrary networks with two types of players. Journal of Mathematical Economics, 113, 102990. https://doi.org/10.1016/j.jmateco.2024.102990
Petrosyan, L. A., Yeung, D. W. K. (2021). Shapley Value for Differential Network Games: Theory and Application. Journal of Dynamics and Games, 8(2), 151–166. https://doi.org/10.3934/jdg.2020021
Petrosyan, L. A., Yeung, D. W. K., Pankratova, Y. (2021). Dynamic Cooperative Games on Networks. In: Strekalovsky A., Kochetov Y., Gruzdeva T., Orlov A. (eds) Mathematical Optimization Theory and Operations Research: Recent Trends. MOTOR 2021. Communications in Computer and Information Science, vol 1476. Springer, Cham. https://doi.org/10.1007/978-3-030-86433-0_28
Shapley, L. S. (1953). A Value for N-person Games. In H. Kuhn and A. Tucker (eds.), Contributions to the Theory of Games. Princeton University Press, Princeton, pp. 307–317.
Tomassini, M., Pestelacci, E. (2010). Coordination games on dynamical networks. Games, 1(3), 242–261. https://doi.org/10.3390/g1030242
Yeung, D. W. K., Petrosyan, L. A. (2004). Subgame Consistent Cooperative Solutions in Stochastic Differential Games. Journal of Optimization Theory and Applications, 120(3), 651–666. https://doi.org/10.1023/B:JOTA.0000025714.04164.e4
Yeung, D. W. K., Petrosyan, L. A. (2006). Cooperative Stochastic Differential Games. New York: Springer-Verlag.
Yeung, D. W. K., Petrosyan, L. A. (2010). Subgame Consistent Solutions for Cooperative Stochastic Dynamic Games. Journal of Optimization Theory and Applications, 145(3), 579–596.
Yeung, D. W. K., Petrosyan, L. A. (2016). Subgame Consistent Cooperation: A Comprehensive Treatise, Springer.
Yeung, D. W. K., Petrosyan, L. A., Zhang, Y. X. (2021). Trade with Technology Spillover: A Dynamic Network Game Analysis. International Game Theory Review, 23(1), 2050011. https://doi.org/10.1142/S0219198920500115
Yeung, D. W. K., Petrosyan, L. A., Zhang, Y. X. (2024a). A Dynamic Network Game of the Fintech Industry. Journal of the Operations Research Society of China, 12(1), 5–33. https://doi.org/10.1007/s40305-022-00434-4
Yeung, D. W. K., Petrosyan, L. A., Zhang, Y. X. (2024b). A Fair-Sharing Value for Cooperative Dynamic Network Games. Dynamic Games and Applications. https://doi.org/10.1007/s13235-024-00562-x
Yeung, D. W. K., Petrosyan, L. A., Zhang, Y. X. (2024c). Managing Interconnection of Electricity Generation, Transmission and Distribution: A Dynamic Collaborative Solution, paper prepared for presentation at the IEEE TENCON 2024, Marina Bay Sands, Singapore, 1-4, Dec. 2024.
Downloads
Published
How to Cite
Issue
Section
License
Articles of "Contributions to Game Theory and Management" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.
