Proportional egalitarian core solution for profit allocation games with an application to collaborative transportation planning

For a profit allocation game, one key issue is to find a fair allocation of profit among its players. In this paper, a proportional egalitarian core solution is proposed, which defines in the core of a game an allocation that takes account of each player's contribution to the grand coalition. This solution concept generalises the egalitarian core solution for cooperative games. To efficiently compute the new solution, a row generation method is developed. The applicability of this new solution concept and the row generation method is demonstrated by an application to a carrier collaboration problem with numerical experiment results. [Received 12 November 2012; Revised 30 July 2013; Accepted 08 September 2013]