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Contributions to Game Theory and Management, 2024 Volume 17, Pages 231–242 (Mi cgtm473)

Managing interconnected production in a dynamic network a fair gain-sharing collaborative solution

David W.K. Yeungabc, Leon A. Petrosyanc, Yingxuan Zhangad

a SRS Consortium for Advanced Study in Cooperative Dynamic Games, Shue Yan University, Wai Tsui Crescent, North Point, Hong Kong
b Department of Finance, Asia University, 500, Lioufeng Rd., Wufeng, Taichung, 41354, Taiwan
c Faculty of Applied Mathematics and Control Processes, Center of Game Theory, St. Petersburg State University, 7/9, Universitetskaya nab., St. Petersburg, 199034, Russia, Email:
d Department of Hospitality and Business Management, Technological and Higher Education Institute of Hong Kong, 133 Shing Tai Road, Chai Wan, Hong Kong

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, gain-sharing principle.

Language: English

DOI: 10.21638/11701/spbu31.2024.18



© Steklov Math. Inst. of RAS, 2025