TY - CHAP

T1 - Cost-saving joint venture under uncertainty

AU - Yeung, David W.K.

AU - Petrosyan, Leon A.

PY - 2012/1/1

Y1 - 2012/1/1

N2 - In this chapter, we consider a cost-saving joint venture in the presence of stochastic elements. Section 9.1 formulates a dynamic cost-saving corporate joint venture in a stochastic environment and characterizes its subgame consistent solutions. An explicitly solvable illustration is given in Sect. 9.2. A characterization of the Shapley Value solution to a stochastic cost-saving joint venture is presented in Sect. 9.3 and a payoff distribution procedure leading to a subgame consistent solution is computed. Extensions to infinite-horizon ventures are formulated with explicit illustrations in the subsequent two sections.

AB - In this chapter, we consider a cost-saving joint venture in the presence of stochastic elements. Section 9.1 formulates a dynamic cost-saving corporate joint venture in a stochastic environment and characterizes its subgame consistent solutions. An explicitly solvable illustration is given in Sect. 9.2. A characterization of the Shapley Value solution to a stochastic cost-saving joint venture is presented in Sect. 9.3 and a payoff distribution procedure leading to a subgame consistent solution is computed. Extensions to infinite-horizon ventures are formulated with explicit illustrations in the subsequent two sections.

KW - Expected profit

KW - Grand coalition

KW - Joint venture

KW - Stochastic control problem

KW - Technical appendix

UR - http://www.scopus.com/inward/record.url?scp=85057520545&partnerID=8YFLogxK

U2 - 10.1007/978-0-8176-8262-0_9

DO - 10.1007/978-0-8176-8262-0_9

M3 - Chapter

AN - SCOPUS:85057520545

SN - 978-0-8176-8261-3

T3 - Static and Dynamic Game Theory: Foundations and Applications

SP - 239

EP - 270

BT - SUBGAME CONSISTENT ECONOMIC OPTIMIZATION: AN ADVANCED COOPERATIVE DYNAMIC GAME ANALYSIS

PB - Birkhäuser Verlag AG

ER -