The pegs-rule for probabilistic sequencing situations

This paper considers one-machine sequencing situations in which agents are in a ed initial order before the processing of the machine starts. The agents are allowed to rearrange positions to save costs w.r.t. the costs given by the initial order. We will assume that the agents are not certain about the position they will take in the initial order. For these sequencing situations we introduce and characterize in two dierent ways the Probabilistic Equal Gain Splitting (PEGS) rule that assigns the expected cost savings to the agents.