Generalized Network Problems Yielding Totally Balanced Games

Published Online:https://doi.org/10.1287/opre.30.5.998

A class of multiperson mathematical optimization problems is considered and is shown to generate cooperative games with nonempty cores. The class includes, but is not restricted to, numerous versions of network flow problems. It was shown by Owen that for games generated by linear programming optimization problems, optimal dual solutions correspond to points in the core. We identify a special class of network flow problems for which the converse is true, i.e., every point in the core corresponds to an optimal dual solution.

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