Browsing by Author "Gerchak, Yigal"

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Access status: Open Access ,
Allocating pooled inventory according to contributions and entitlements
(2015) Gerchak, Yigal
Inventory pooling, whether by centralization of stock or by mutual assistance, is known to be beneficial when demands are uncertain. But when the retailers are independent, the question is how to divide the benefits of pooling. We consider a decentralized inventorypooling scheme where a retailer’s entitlements to the allocation during a shortage depend on his/her contributions to the pool. We derive the Nash equilibrium and specialize it to symmetric cases.
Access status: Open Access ,
On the non-symmetric Nash and Kalai–Smorodinsky Bargaining Solutions
(2015) Gerchak, Yigal
Recently, in some negotiation application areas, the usual assumption that negotiators are symmetric has been relaxed. In particular, weights have been introduced to the Nash Bargaining Solution to reflect the different powers of the players. Yet, we feel that operating with non-symmetric bargaining solutions and their implications is not well understood. We analyze the properties and optimization of the non-symmetric Nash Bargaining Solution and of a non-symmetric Kalai–Smorodinsky Bargaining Solution. We provide extensive comparative statics, then comment on the implications of the concepts in supply chain coordination contexts.