In what follows, we will cover transferable utility cooperative games
(players can share utility via side payments) and two solution concepts:
the core of the game and the Shapley value, and also biform games that
have found several applications in SCM. Not covered are alternative
concepts of value, e.g., nucleous and the σ-value, and games with nontransferable
utility that have not yet found application in SCM. Material
in this section is based mainly on Stuart (2001) and Moulin (1995).
Perhaps the first paper employing cooperative games in SCM is Wang
and Parlar (1994) who analyze the newsvendor game with three players,
first in a non-cooperative setting and then under cooperation with and
without Transferable Utility.