Abstract
Existing formulations of a cartel game aim at finding stable coalitions, i.e. a coalition is labelled stable or not stable. Uncertainty about the underlying structure and/or parameter values gives rise to sensitivity or uncertainty analysis. In this paper we follow a probabilistic robustness concept: What is the probability a product, design or policy really fulfils the requirements or properties it is expected to. Following this idea, we introduce the concept of stability likelihood: What is the probability a coalition can be labelled as stable. Methods are described based on Monte Carlo Simulation and Directional Simulation to estimate such a probability and we illustrate the performance for several cases
Original language | English |
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Pages (from-to) | 333-348 |
Journal | European Journal of Operational Research |
Volume | 174 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2006 |
Keywords
- Environment
- Game theory
- Multivariate statistics
- Robustness and sensitivity analysis
- Uncertainty modelling