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The warehouse-retailer network design game

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  • In this paper, we consider the warehouse-retailer network design game based on the warehouse-retailer network design problem (WRND) proposed by Teo and Shu (2004). By carefully defining the generalized distance function, we present a cost-sharing method for the warehouse-retailer network design game. We show that the proposed cost-sharing scheme is cross-monotonic, competitive, and $3$-approximate cost recovery.
    Mathematics Subject Classification: Primary: 90C59; Secondary: 90C10.

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