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Abstract
We analyze retail space-exchange problems where two or more retailers exchange their excess retail spaces to improve the utilization of their space resource. We first investigate the two-retailer space exchange problem. In order to entice both retailers with different bargaining powers to exchange their spaces, we use the generalized Nash bargaining scheme to allocate the total profit surplus between the two retailers. Next, we consider the space-exchange problem involving three or more retailers, and construct a cooperative game in characteristic function form. We show that the game is essential and superadditive, and also prove that the core is non-empty. Moreover, in order to find a unique allocation scheme that ensures the stability of the grand coalition, we propose a new approach to compute a weighted Shapley value that satisfies the core conditions and also reflects retailers’ bargaining powers. Our analysis indicates that the space exchange by more retailers can result in a higher system-wide profit surplus and thus a higher allocation to each retailer under a fair scheme.
Original language | English |
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Pages (from-to) | 393-404 |
Number of pages | 12 |
Journal | European Journal of Operational Research |
Volume | 232 |
Issue number | 2 |
Early online date | 22 Jul 2013 |
DOIs | |
Publication status | Published - 16 Jan 2014 |
Funding
Research supported by the General Research Fund of the Hong Kong Research Grants Council under Research Project No. LU340810.
Keywords
- Retail space-exchange
- Bargaining power
- Generalized Nash bargaining scheme
- Weighted Shapley value
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Dive into the research topics of 'Cooperative game analysis of retail space-exchange problems'. Together they form a unique fingerprint.Projects
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Cooperative Game Analysis of Retail Space-Exchange Problems (零售经营面积交换问题的合作式博弈分析)
LENG, M. (PI) & PARLAR, M. (CoI)
Research Grants Council (HKSAR)
1/01/11 → 31/12/12
Project: Grant Research