IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v129y2024ics0305048324001324.html
   My bibliography  Save this article

Modeling collaborative data service provision around an open source platform under uncertainty with stochastic provision games

Author

Listed:
  • Pisciella, Paolo
  • Gaivoronski, Alexei A.

Abstract

This paper uses concepts taken from Cooperative Game Theory to model the incentives to join forces among a group of agents involved in collaborative provision of a mobile app under uncertainty around an open source platform. Demand uncertainty leads the agents to reach a noncooperative equilibrium by offering low quality apps. This can be avoided by introducing a coordination scheme through a common platform that eliminates the effects of lack of information. Coordination is achieved by providing a revenue sharing scheme enforcing the stability of the collaboration but also defined in a “fair” way, depending on the importance of the resources that each provider supplies to the app. To this aim, we introduce the concept of Stochastic Provision Games. This coordination leads both to higher app quality and improved profitability for the participants.

Suggested Citation

  • Pisciella, Paolo & Gaivoronski, Alexei A., 2024. "Modeling collaborative data service provision around an open source platform under uncertainty with stochastic provision games," Omega, Elsevier, vol. 129(C).
  • Handle: RePEc:eee:jomega:v:129:y:2024:i:c:s0305048324001324
    DOI: 10.1016/j.omega.2024.103167
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048324001324
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.omega.2024.103167?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Luo, Chunlin & Zhou, Xiaoyang & Lev, Benjamin, 2022. "Core, shapley value, nucleolus and nash bargaining solution: A Survey of recent developments and applications in operations management," Omega, Elsevier, vol. 110(C).
    2. Xia, Lulu & Li, Kai & Fu, Hong, 2024. "Bargaining in mobile app supply chain considering members’ fairness concern attitudes," International Journal of Production Economics, Elsevier, vol. 270(C).
    3. Avinadav, Tal & Chernonog, Tatyana & Perlman, Yael, 2015. "The effect of risk sensitivity on a supply chain of mobile applications under a consignment contract with revenue sharing and quality investment," International Journal of Production Economics, Elsevier, vol. 168(C), pages 31-40.
    4. Jean‐Charles Rochet & Jean Tirole, 2006. "Two‐sided markets: a progress report," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 645-667, September.
    5. Xing Hu & René Caldentey & Gustavo Vulcano, 2013. "Revenue Sharing in Airline Alliances," Management Science, INFORMS, vol. 59(5), pages 1177-1195, May.
    6. Çetiner, D. & Kimms, A., 2013. "Assessing fairness of selfish revenue sharing mechanisms for airline alliances," Omega, Elsevier, vol. 41(4), pages 641-652.
    7. Uhan, Nelson A., 2015. "Stochastic linear programming games with concave preferences," European Journal of Operational Research, Elsevier, vol. 243(2), pages 637-646.
    8. Flåm, S. D. & Ermoliev, Y. M., 2009. "Investment, uncertainty, and production games," Environment and Development Economics, Cambridge University Press, vol. 14(1), pages 51-66, February.
    9. Timmer, Judith & Chessa, Michela & Boucherie, Richard J., 2013. "Cooperation and game-theoretic cost allocation in stochastic inventory models with continuous review," European Journal of Operational Research, Elsevier, vol. 231(3), pages 567-576.
    10. Yan, Xinghao & Zhao, Hui, 2015. "Inventory sharing and coordination among n independent retailers," European Journal of Operational Research, Elsevier, vol. 243(2), pages 576-587.
    11. Montrucchio, Luigi & Scarsini, Marco, 2007. "Large newsvendor games," Games and Economic Behavior, Elsevier, vol. 58(2), pages 316-337, February.
    12. Özen, Ulas & Norde, Henk & Slikker, Marco, 2011. "On the convexity of newsvendor games," International Journal of Production Economics, Elsevier, vol. 133(1), pages 35-42, September.
    13. Sher, Mikhail M. & Kim, Seung-Lae & Banerjee, Avijit & Paz, Michael T., 2018. "A supply chain coordination mechanism for common items subject to failure in the electronics, defense, and medical industries," International Journal of Production Economics, Elsevier, vol. 203(C), pages 164-173.
    14. Lloyd S. Shapley, 1967. "On balanced sets and cores," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(4), pages 453-460.
    15. Zhou, Yong-Wu & Lin, Xiaogang & Zhong, Yuanguang & Xie, Wei, 2019. "Contract selection for a multi-service sharing platform with self-scheduling capacity," Omega, Elsevier, vol. 86(C), pages 198-217.
    16. An, Qingxian & Wen, Yao & Ding, Tao & Li, Yongli, 2019. "Resource sharing and payoff allocation in a three-stage system: Integrating network DEA with the Shapley value method," Omega, Elsevier, vol. 85(C), pages 16-25.
    17. Ballon, Pieter & Van Heesvelde, Eric, 2011. "ICT platforms and regulatory concerns in Europe," Telecommunications Policy, Elsevier, vol. 35(8), pages 702-714, September.
    18. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    19. Schlicher, Loe & Dietzenbacher, Bas & Musegaas, Marieke, 2024. "Stable streaming platforms: a cooperative game approach," Omega, Elsevier, vol. 125(C).
    20. Avinadav, Tal & Chernonog, Tatyana & Perlman, Yael, 2015. "Consignment contract for mobile apps between a single retailer and competitive developers with different risk attitudes," European Journal of Operational Research, Elsevier, vol. 246(3), pages 949-957.
    21. Silbermayr, Lena, 2020. "A review of non-cooperative newsvendor games with horizontal inventory interactions," Omega, Elsevier, vol. 92(C).
    22. Chernonog, Tatyana & Avinadav, Tal & Ben-Zvi, Tal, 2015. "Pricing and sales-effort investment under bi-criteria in a supply chain of virtual products involving risk," European Journal of Operational Research, Elsevier, vol. 246(2), pages 471-475.
    23. Slikker, Marco & Fransoo, Jan & Wouters, Marc, 2005. "Cooperation between multiple news-vendors with transshipments," European Journal of Operational Research, Elsevier, vol. 167(2), pages 370-380, December.
    24. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2020. "The strategic analysis of logistics service sharing in an e-commerce platform," Omega, Elsevier, vol. 92(C).
    25. Hezarkhani, Behzad & Slikker, Marco & Van Woensel, Tom, 2018. "Collaborative replenishment in the presence of intermediaries," European Journal of Operational Research, Elsevier, vol. 266(1), pages 135-146.
    26. Yang, Huixiao & Luo, Jianwen & Wang, Haijun, 2017. "The role of revenue sharing and first-mover advantage in emission abatement with carbon tax and consumer environmental awareness," International Journal of Production Economics, Elsevier, vol. 193(C), pages 691-702.
    27. Chernonog, Tatyana & Levy, Priel, 2023. "Co-creation of mobile app quality in a two-platform supply chain when platforms are asymmetric," European Journal of Operational Research, Elsevier, vol. 308(1), pages 183-200.
    28. Govindan, Kannan & Malomfalean, Andreea, 2019. "A framework for evaluation of supply chain coordination by contracts under O2O environment," International Journal of Production Economics, Elsevier, vol. 215(C), pages 11-23.
    29. Liu, Jia-Cai & Sheu, Jiuh-Biing & Li, Deng-Feng & Dai, Yong-Wu, 2021. "Collaborative profit allocation schemes for logistics enterprise coalitions with incomplete information," Omega, Elsevier, vol. 101(C).
    30. Karsten, Frank & Basten, Rob J.I., 2014. "Pooling of spare parts between multiple users: How to share the benefits?," European Journal of Operational Research, Elsevier, vol. 233(1), pages 94-104.
    31. Bezalel Peleg & Peter Sudhölter, 2007. "Introduction to the Theory of Cooperative Games," Theory and Decision Library C, Springer, edition 0, number 978-3-540-72945-7, December.
    32. Ulac{s} Özen & Jan Fransoo & Henk Norde & Marco Slikker, 2008. "Cooperation Between Multiple Newsvendors with Warehouses," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 311-324, February.
    33. Hartman, Bruce C. & Dror, Moshe & Shaked, Moshe, 2000. "Cores of Inventory Centralization Games," Games and Economic Behavior, Elsevier, vol. 31(1), pages 26-49, April.
    34. Gaivoronski, Alexei A. & Nesse, Per-Jonny & Østerbo, Olav-Norvald & Lønsethagen, Håkon, 2016. "Risk-balanced dimensioning and pricing of End-to-End differentiated services," European Journal of Operational Research, Elsevier, vol. 254(2), pages 644-655.
    35. Fan, Yinghua & Feng, Yi & Shou, Yongyi, 2020. "A risk-averse and buyer-led supply chain under option contract: CVaR minimization and channel coordination," International Journal of Production Economics, Elsevier, vol. 219(C), pages 66-81.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luo, Chunlin & Zhou, Xiaoyang & Lev, Benjamin, 2022. "Core, shapley value, nucleolus and nash bargaining solution: A Survey of recent developments and applications in operations management," Omega, Elsevier, vol. 110(C).
    2. Hezarkhani, Behzad & Slikker, Marco & Van Woensel, Tom, 2018. "Collaborative replenishment in the presence of intermediaries," European Journal of Operational Research, Elsevier, vol. 266(1), pages 135-146.
    3. Xin Chen & Jiawei Zhang, 2009. "A Stochastic Programming Duality Approach to Inventory Centralization Games," Operations Research, INFORMS, vol. 57(4), pages 840-851, August.
    4. M Dror & B C Hartman, 2011. "Survey of cooperative inventory games and extensions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 565-580, April.
    5. Fiestras-Janeiro, M.G. & García-Jurado, I. & Meca, A. & Mosquera, M.A., 2011. "Cooperative game theory and inventory management," European Journal of Operational Research, Elsevier, vol. 210(3), pages 459-466, May.
    6. Özen, Ulas & Norde, Henk & Slikker, Marco, 2011. "On the convexity of newsvendor games," International Journal of Production Economics, Elsevier, vol. 133(1), pages 35-42, September.
    7. Ozen, U. & Slikker, M. & Norde, H.W., 2007. "A General Framework for Cooperation under Uncertainty," Other publications TiSEM 1972d523-d611-4906-a7c1-a, Tilburg University, School of Economics and Management.
    8. Özen, Ulaş & Erkip, Nesim & Slikker, Marco, 2012. "Stability and monotonicity in newsvendor situations," European Journal of Operational Research, Elsevier, vol. 218(2), pages 416-425.
    9. Xin Chen, 2009. "Inventory Centralization Games with Price-Dependent Demand and Quantity Discount," Operations Research, INFORMS, vol. 57(6), pages 1394-1406, December.
    10. Ulaş Özen & Marco Slikker & Greys Sošić, 2022. "On the core of m$m$‐attribute games," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1770-1787, April.
    11. Uhan, Nelson A., 2015. "Stochastic linear programming games with concave preferences," European Journal of Operational Research, Elsevier, vol. 243(2), pages 637-646.
    12. Ozen, U. & Slikker, M. & Norde, H.W., 2007. "A General Framework for Cooperation under Uncertainty," Discussion Paper 2007-57, Tilburg University, Center for Economic Research.
    13. Xuan Vinh Doan & Tri-Dung Nguyen, 2019. "Technical Note—Robust Newsvendor Games with Ambiguity in Demand Distributions," Operations Research, INFORMS, vol. 68(4), pages 1047-1062, July.
    14. Zhou, Xiaoyang & Liu, He & Li, Jialu & Zhang, Kai & Lev, Benjamin, 2023. "Channel strategies when digital platforms emerge: A systematic literature review," Omega, Elsevier, vol. 120(C).
    15. Xia, Lulu & Li, Kai & Fu, Hong, 2024. "Bargaining in mobile app supply chain considering members’ fairness concern attitudes," International Journal of Production Economics, Elsevier, vol. 270(C).
    16. Avinadav, Tal & Levy, Priel, 2024. "Improving efficiency in supply chains with a capital-constrained app developer under the agency contract," European Journal of Operational Research, Elsevier, vol. 315(3), pages 991-1005.
    17. Guardiola, Luis A. & Meca, Ana & Puerto, Justo, 2023. "Allocating the surplus induced by cooperation in distribution chains with multiple suppliers and retailers," Journal of Mathematical Economics, Elsevier, vol. 108(C).
    18. Avinadav, Tal & Levy, Priel, 2022. "Value of information in a mobile app supply chain under hidden or known information superiority," International Journal of Production Economics, Elsevier, vol. 248(C).
    19. Li, Jun & Feng, Hairong & Zeng, Yinlian, 2014. "Inventory games with permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 234(3), pages 694-700.
    20. Avinadav, Tal, 2020. "The effect of decision rights allocation on a supply chain of perishable products under a revenue-sharing contract," International Journal of Production Economics, Elsevier, vol. 225(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:129:y:2024:i:c:s0305048324001324. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.