IDEAS home Printed from https://ideas.repec.org/a/spr/mathme/v95y2022i1d10.1007_s00186-022-00771-3.html
   My bibliography  Save this article

Lagrangian heuristic for simultaneous subsidization and penalization: implementations on rooted travelling salesman games

Author

Listed:
  • Lindong Liu

    (University of Science and Technology of China)

  • Yuqian Zhou

    (University of Science and Technology of China)

  • Zikang Li

    (University of Science and Technology of China)

Abstract

This work examines the problem of stabilizing the grand coalition of an unbalanced cooperative game under the concept of simultaneous subsidization and penalization (S&P). We design a generic framework for developing heuristic algorithms to evaluate the trade-off between subsidy and penalty in the S&P instrument. By incorporating some Lagrangian relaxation techniques, we develop an approach for computing feasible subsidy–penalty pairs under which the grand coalition is stabilized in unbalanced cooperative games. This approach is particularly applicable when the characteristic functions of a cooperative game involve intractable integer programmes. To illustrate the performance of the Lagrangian relaxation based approach, we investigate the rooted travelling salesman game, and the computational results obtained show that our new approach is both efficient and effective.

Suggested Citation

  • Lindong Liu & Yuqian Zhou & Zikang Li, 2022. "Lagrangian heuristic for simultaneous subsidization and penalization: implementations on rooted travelling salesman games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 95(1), pages 81-99, February.
    • Handle: RePEc:spr:mathme:v:95:y:2022:i:1:d:10.1007_s00186-022-00771-3
    DOI: 10.1007/s00186-022-00771-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00186-022-00771-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00186-022-00771-3?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. Lindong Liu & Xiangtong Qi & Zhou Xu, 2016. "Computing Near-Optimal Stable Cost Allocations for Cooperative Games by Lagrangian Relaxation," INFORMS Journal on Computing, INFORMS, vol. 28(4), pages 687-702, November.
    2. G. Dantzig & R. Fulkerson & S. Johnson, 1954. "Solution of a Large-Scale Traveling-Salesman Problem," Operations Research, INFORMS, vol. 2(4), pages 393-410, November.
    3. Marshall L. Fisher, 1981. "The Lagrangian Relaxation Method for Solving Integer Programming Problems," Management Science, INFORMS, vol. 27(1), pages 1-18, January.
    4. Shapley, Lloyd S. & Shubik, Martin, 1969. "On market games," Journal of Economic Theory, Elsevier, vol. 1(1), pages 9-25, June.
    5. M. Maschler & B. Peleg & L. S. Shapley, 1979. "Geometric Properties of the Kernel, Nucleolus, and Related Solution Concepts," Mathematics of Operations Research, INFORMS, vol. 4(4), pages 303-338, November.
    6. Andreas S. Schulz & Nelson A. Uhan, 2010. "Sharing Supermodular Costs," Operations Research, INFORMS, vol. 58(4-part-2), pages 1051-1056, August.
    7. Kimms, A. & Kozeletskyi, I., 2016. "Core-based cost allocation in the cooperative traveling salesman problem," European Journal of Operational Research, Elsevier, vol. 248(3), pages 910-916.
    8. Kolen, Antoon, 1983. "Solving covering problems and the uncapacitated plant location problem on trees," European Journal of Operational Research, Elsevier, vol. 12(3), pages 266-278, March.
    9. GOEMANS, Michel X. & SKUTELLA, Martin, 2000. "Cooperative facility location games," LIDAM Discussion Papers CORE 2000014, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Potters, J.A.M. & Curiel, I. & Tijs, S.H., 1992. "Traveling salesman games," Other publications TiSEM 0dd4cf3d-25fa-4179-80f6-6, Tilburg University, School of Economics and Management.
    11. Puerto, Justo & Tamir, Arie & Perea, Federico, 2011. "A cooperative location game based on the 1-center location problem," European Journal of Operational Research, Elsevier, vol. 214(2), pages 317-330, October.
    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. Lindong Liu & Xiangtong Qi & Zhou Xu, 2016. "Computing Near-Optimal Stable Cost Allocations for Cooperative Games by Lagrangian Relaxation," INFORMS Journal on Computing, INFORMS, vol. 28(4), pages 687-702, November.
    2. Lindong Liu & Xiangtong Qi & Zhou Xu, 2024. "Stabilizing Grand Cooperation via Cost Adjustment: An Inverse Optimization Approach," INFORMS Journal on Computing, INFORMS, vol. 36(2), pages 635-656, March.
    3. Haimanko, Ori & Le Breton, Michel & Weber, Shlomo, 2004. "Voluntary formation of communities for the provision of public projects," Journal of Economic Theory, Elsevier, vol. 115(1), pages 1-34, March.
    4. Martinhon, Carlos & Lucena, Abilio & Maculan, Nelson, 2004. "Stronger K-tree relaxations for the vehicle routing problem," European Journal of Operational Research, Elsevier, vol. 158(1), pages 56-71, October.
    5. Michel Le Breton & Juan Moreno-Ternero & Alexei Savvateev & Shlomo Weber, 2013. "Stability and fairness in models with a multiple membership," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(3), pages 673-694, August.
    6. Kimms, A. & Kozeletskyi, I., 2016. "Core-based cost allocation in the cooperative traveling salesman problem," European Journal of Operational Research, Elsevier, vol. 248(3), pages 910-916.
    7. Daniel Granot & Jeroen Kuipers & Sunil Chopra, 2002. "Cost Allocation for a Tree Network with Heterogeneous Customers," Mathematics of Operations Research, INFORMS, vol. 27(4), pages 647-661, November.
    8. Westerink-Duijzer, L.E. & Schlicher, L.P.J. & Musegaas, M., 2019. "Fair allocations for cooperation problems in vaccination," Econometric Institute Research Papers EI2019-06, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    9. Yang, Jian & Li, Jianbin, 2020. "Cooperative game with nondeterministic returns," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 123-140.
    10. Abilio Lucena, 2005. "Non Delayed Relax-and-Cut Algorithms," Annals of Operations Research, Springer, vol. 140(1), pages 375-410, November.
    11. Lotty E. Westerink‐Duijzer & Loe P. J. Schlicher & Marieke Musegaas, 2020. "Core Allocations for Cooperation Problems in Vaccination," Production and Operations Management, Production and Operations Management Society, vol. 29(7), pages 1720-1737, July.
    12. Karaca, Orcun & Delikaraoglou, Stefanos & Hug, Gabriela & Kamgarpour, Maryam, 2022. "Enabling inter-area reserve exchange through stable benefit allocation mechanisms," Omega, Elsevier, vol. 113(C).
    13. Keyzer, Michiel & van Wesenbeeck, Cornelia, 2011. "Optimal coalition formation and surplus distribution: Two sides of one coin," European Journal of Operational Research, Elsevier, vol. 215(3), pages 604-615, December.
    14. Sanchez-Soriano, Joaquin, 2003. "The pairwise egalitarian solution," European Journal of Operational Research, Elsevier, vol. 150(1), pages 220-231, October.
    15. Shoshana Anily, 2018. "Full characterization of the nonnegative core of some cooperative games," Naval Research Logistics (NRL), John Wiley & Sons, vol. 65(4), pages 303-316, June.
    16. Lloyd S. Shapley, 1992. "Kernels of Replicated Market Games," UCLA Economics Working Papers 654, UCLA Department of Economics.
    17. Camelia Bejan & Juan Camilo Gómez, 2018. "Equal treatment without large numbers," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(4), pages 1239-1259, November.
    18. Nguyen, Tri-Dung & Thomas, Lyn, 2016. "Finding the nucleoli of large cooperative games," European Journal of Operational Research, Elsevier, vol. 248(3), pages 1078-1092.
    19. Stefan Engevall & Maud Göthe-Lundgren & Peter Värbrand, 2004. "The Heterogeneous Vehicle-Routing Game," Transportation Science, INFORMS, vol. 38(1), pages 71-85, February.
    20. Yang, Fei & Dai, Ying & Ma, Zu-Jun, 2020. "A cooperative rich vehicle routing problem in the last-mile logistics industry in rural areas," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(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:spr:mathme:v:95:y:2022:i:1:d:10.1007_s00186-022-00771-3. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.