Joint cost allocation among supply chain enterprises based on cooperative game

Abstract

A kind of cooperative cost game is established, whose payoff function dissatisfies superadditivity, but satisfies subadditivity. Two solution concepts of the cooperative cost game - core and Shapley value are proposed. Further more, it proves that the core of submodular cooperative game is existent and Shapley value under a set of axioms is similar with crisp cooperative game. Two solution concepts are used to allocate the joint cost among the member enterprises in a supply chain which is viewed as a cooperative coalition. Finally, the result of a number example indicates that the principle of the method is available and reasonable.