Capacity allocation games without an initial sequence

Abstract

We consider a capacity allocation problem where multiple manufacturers order production capacity. Orders generate a value and a time-dependent scheduling cost. No initial sequence of orders is assumed. Using a cooperative game, we investigate how manufacturers can order cooperatively to increase their profits. Assuming that each coalition expects known probabilities for its orders to be processed first and last, we identify exact conditions for the cooperative game to be balanced. We also show the intractability of the core emptiness test.