Yinlian Zeng , Siyi Wang , Xiaoqiang Cai , Lianmin Zhang
{"title":"Incentive-compatible cost allocations for inventory games with private information","authors":"Yinlian Zeng , Siyi Wang , Xiaoqiang Cai , Lianmin Zhang","doi":"10.1016/j.orl.2024.107073","DOIUrl":null,"url":null,"abstract":"<div><p><span>In this paper we design cost allocation rules for inventory games with private information. First, we design incentive-compatible cost allocation rules for inventory games with private information via Vickrey-Clarke-Groves (VCG) rules. Then, we propose incentive-compatible and approximate budget-balanced cost allocations via </span>polynomial approximations such as the Chebyshev approximation and the Taylor approximation. In addition, we propose an incentive-compatible cost allocation with individual rationality. Finally, we conduct numerical experiments to compare the performance of the proposed cost allocations.</p></div>","PeriodicalId":54682,"journal":{"name":"Operations Research Letters","volume":"53 ","pages":"Article 107073"},"PeriodicalIF":0.8000,"publicationDate":"2024-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Operations Research Letters","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0167637724000099","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"OPERATIONS RESEARCH & MANAGEMENT SCIENCE","Score":null,"Total":0}
引用次数: 0
Abstract
In this paper we design cost allocation rules for inventory games with private information. First, we design incentive-compatible cost allocation rules for inventory games with private information via Vickrey-Clarke-Groves (VCG) rules. Then, we propose incentive-compatible and approximate budget-balanced cost allocations via polynomial approximations such as the Chebyshev approximation and the Taylor approximation. In addition, we propose an incentive-compatible cost allocation with individual rationality. Finally, we conduct numerical experiments to compare the performance of the proposed cost allocations.
期刊介绍:
Operations Research Letters is committed to the rapid review and fast publication of short articles on all aspects of operations research and analytics. Apart from a limitation to eight journal pages, quality, originality, relevance and clarity are the only criteria for selecting the papers to be published. ORL covers the broad field of optimization, stochastic models and game theory. Specific areas of interest include networks, routing, location, queueing, scheduling, inventory, reliability, and financial engineering. We wish to explore interfaces with other fields such as life sciences and health care, artificial intelligence and machine learning, energy distribution, and computational social sciences and humanities. Our traditional strength is in methodology, including theory, modelling, algorithms and computational studies. We also welcome novel applications and concise literature reviews.