The newsvendor game has a non-empty core

M. Shaked, M. SCARSINI, A. Müller

Games and Economic Behavior

2002, vol. 38, n°1, pp.118-126

Départements : Economie et Sciences de la décision

We settle an open conjecture regarding the newsvendor game. We prove that its core is always nonempty for all possible joint distributions of the random demands. We give sufficient conditions under which the core is a singleton, or at a core allocation every newsvendor shares a nonnegative cost