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Selected Topics in Cooperative Game Theory

In: Fair Revenue Sharing Mechanisms for Strategic Passenger Airline Alliances

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  • Demet Çetiner

Abstract

Cooperative game theory provides solutions for allocating the cost or payoff of a cooperation among its partners. The aim of this chapter is to present the theoretical basis of these solution concepts and review their applications to various allocation problems. After a brief introduction to game theory, cooperative games and their properties are described. For a game on hand, different solutions usually result in allocations having different properties. Section 4.5 discusses the major properties of payoff allocations. Thereafter, the well known solution concepts are presented. In this study, we develop nucleolus-based revenue shares for passenger airline alliances. Therefore, special focus is given to the solution concepts related to the nucleolus. Finally, a literature review on the applications of cooperative game theory and its solution concepts to various cost/payoff allocation problems is presented.

Suggested Citation

  • Demet Çetiner, 2013. "Selected Topics in Cooperative Game Theory," Lecture Notes in Economics and Mathematical Systems, in: Fair Revenue Sharing Mechanisms for Strategic Passenger Airline Alliances, edition 127, chapter 0, pages 43-72, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-35822-7_4
    DOI: 10.1007/978-3-642-35822-7_4
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    Cited by:

    1. Guajardo, Mario & Jörnsten, Kurt, 2015. "Common mistakes in computing the nucleolus," European Journal of Operational Research, Elsevier, vol. 241(3), pages 931-935.

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