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Production Games under Uncertainty

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  • Sandsmark, Maria

Abstract

The main objects below are transferable-utility games in which each agent faces an optimization problem, briefly called production planning, constrained by his resource endowment. Coalitions can pool members' resources. Such production games are here extended to accommodate uncertainty about events not known ex ante. Planning then takes the form of two-stage stochastic programming. Core solutions are sought, described, and computed via aggregate dual programs. The analysis is motivated by practical applications. Examples include stochastic production and regional distribution with random demand and supply, illustrated by a numerical example. Citation Copyright 1999 by Kluwer Academic Publishers.

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  • Sandsmark, Maria, 1999. "Production Games under Uncertainty," Computational Economics, Springer;Society for Computational Economics, vol. 14(3), pages 237-253, December.
  • Handle: RePEc:kap:compec:v:14:y:1999:i:3:p:237-53
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    Cited by:

    1. Peter Borm & Herbert Hamers & Ruud Hendrickx, 2001. "Operations research games: A survey," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 9(2), pages 139-199, December.
    2. Suijs, J.P.M., 1999. "Price Uncertainty in Linear Production Situations," Discussion Paper 1999-91, Tilburg University, Center for Economic Research.
    3. Flam, S. D. & Jourani, A., 2003. "Strategic behavior and partial cost sharing," Games and Economic Behavior, Elsevier, vol. 43(1), pages 44-56, April.

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