cores of inventory centralization games abstract consider a set of n stores with single item and single period demands assume an option of centralized ordering and inventory with holding and penalty costs only in this case a cooperative inventory centralization game defines allocations of the cost we examine the conditions under which such an inventory centralization game has a nonempty core we prove the existence of nonempty core for demands with symmetric distributions and the existence of nonempty core for joint multivariate normal demand distribution we establish the equivalency of four different nonempty core conditions for the newsboy problem and demonstrate their efficacy for discrete independent and identically distributed iid demands journal of economic literature classification numbers c44 c62 c71

is there a glass ceiling in sweden using 1998 data we show that the gender log wage gap in sweden increases throughout the wage distribution and accelerates in the upper tail we interpret this as a strong glass ceiling effect we use quantile regression decompositions to examine whether this pattern can be ascribed primarily to gender differences in labor market characteristics or in the rewards to those characteristics even after extensive controls for gender differences in age education both level and field sector industry and occupation we find that the glass ceiling effect we see in the raw data persists to a considerable extent

do better schools matter parental valuation of elementary education the evaluation of numerous school reforms requires an understanding of the value of better schools given the difficulty of calculating the relationship between school quality and student outcomes i turn to another method and use house prices to infer the value parents place on school quality i look within school districts at houses located on attendance district boundaries houses then differ only by the elementary school the child attends i thereby effectively remove the variation in neighborhoods taxes and school spending i find that parents are willing to pay 2 5 percent more for a 5 percent increase in test scores this finding is robust to a number of sensitivity checks

using maimonides rule to estimate the effect of class size on scholastic achievement the twelfth century rabbinic scholar maimonides proposed a maximum class size of 40 this same maximum induces a nonlinear and nonmonotonic relationship between grade enrollment and class size in israeli public schools today maimonides rule of 40 is used here to construct instrumental variables estimates of effects of class size on test scores the resulting identiecation strategy can be viewed as an application of donald campbell s regression discontinuity design to the class size question the estimates show that reducing class size induces a signiecant and substantial increase in test scores for fourth and efth graders although not for third graders when asked about their views on class size in surveys parents and teachers generally report that they prefer smaller classes this may be because those involved with teaching believe that smaller classes promote student learning or simply because smaller classes offer a more pleasant environment for the pupils and teachers who are in them mueller chase and walden 1988 social scientists and school administrators also have a longstanding interest in the class size question class size is often thought to be easier to manipulate than other school inputs and it is a variable at the heart of policy debates on school quality and the allocation of school resources in many countries see e g robinson 1990 for the united states ofsted 1995 for the united kingdom and moshel ravid 1995 for israel this broad interest in the consequences of changing class size

the optimal cycle time for epq inventory model under permissible delay in payments abstract goyal journal of the operational research society 36 1985 35 38 discusses the economic order quantity under conditions of permissible delay in payments an implicit assumption of goyal journal of the operational research society 36 1985 35 38 is that the items are obtained from an outside supplier the entire lot size is delivered at the same time if we wish to adopt all results obtained by goyal journal of the operational research society 36 1985 35 38 then we are effectively assuming that the replenishment rate is infinite the main purpose of this paper is to extend goyal journal of the operational research society 36 1985 35 38 to the case that the units are replenished at a finite rate when the replenishment rate approaches to infinite goyal journal of the operational research society 36 1985 35 38 will be a special case of this paper

counterfactual decomposition of changes in wage distributions using quantile regression we propose a method to decompose the changes in the wage distribution over a period of time in several factors contributing to those changes the method is based on the estimation of marginal wage distributions consistent with a conditional distribution estimated by quantile regression as well as with any hypothesized distribution for the covariates comparing the marginal distributions implied by different distributions for the covariates one is then able to perform counterfactual exercises the proposed methodology enables the identification of the sources of the increased wage inequality observed in most countries specifically it decomposes the changes in the wage distribution over a period of time into several factors contributing to those changes namely by discriminating between changes in the characteristics of the working population and changes in the returns to these characteristics we apply this methodology to portuguese data for the period 1986 1995 and find that the observed increase in educational levels contributed decisively towards greater wage inequality copyright 2005 john wiley sons ltd

the newsvendor game has a nonempty core we settle an open conjecture regarding the newsvendor game we prove that its core is always non empty for all possible joint distributions of the random demands we give sufficient conditions under which the core is a singleton or it contains non negative elements

public private sector wage differentials in canada evidence from quantile regressions abstract quantile regressions are used to estimate the size of the public sector wage premium in canada we find that public sector rent payments tend to be highest for federal government employees females and individuals at the lower tail of the wage distribution

farsighted coalitional stability abstract i define the largest consistent set a solution concept which applies to situations in which coalitions freely form but cannot make binding contracts act publicly and are fully farsighted in that a coalition considers the possibility that once it acts another coalition might react a third coalition might in turn react and so on without limit i establish weak nonemptiness conditions and apply it to strategic and coalitional form games and majority rule voting i argue that it improves on the von neumann morgenstern stable set as it is usually defined but is consistent with a generalization of the stable set as in the theory of social situations journal of economic literature classification numbers c70 c71

measuring investment in education historic debates about the measurement of capital are even more complicated in the case of education and human capital as extensive research demonstrates education resources are not consistently related to student performance in existing elementary and secondary schools this inefficiency in public schools implies that spending and resource measures do not accurately capture variations in school quality this finding then has clear implications for both education policy and economic research because school inputs are poor policy instruments an alternative policy focus that appears much more productive is performance incentives related to student achievement

promise scholarship programs as place making policy evidence from school enrollment and housing prices abstract place based promise scholarship programs which guarantee financial aid for qualifying graduates of a school district have proliferated in recent years using data from multiple sites we compare the evolution of school enrollment and residential real estate prices around program announcement dates within promise eligible and surrounding areas while our estimates indicate that enrollment increased following promise announcements merit based programs generated relative increases in white enrollment housing prices respond strongly in neighborhoods with better primary schools and in the upper half of the housing price distribution we conclude that these programs have important and under studied distributional considerations

explaining personality pay gaps in the uk using the british household panel survey we estimate the effect on pay of each of the big five personality traits for employed men living in the uk we add to the existing literature by estimating the role of factors such as education and occupation in explaining personality pay gaps by allowing the personality traits to affect wage differently across occupations education levels and other workers characteristics and by investigating personality pay gaps for high and low paid workers we find that openness to experience is the most relevant personality trait in explaining wages followed by neuroticism agreeableness extroversion and conscientiousness openness and extroversion are rewarded while agreeableness and neuroticism are penalized but the openness pay gap is totally explained by differences in worker characteristics particularly education and occupation

stability and monotonicity in newsvendor situations this study considers a supply chain that consists of n retailers each of them facing a newsvendor problem and a supplier groups of retailers might increase their expected joint profit by joint ordering and inventory centralization however we assume that the retailers impose some level of stock that should be dedicated to them in this situation we show that the associated cooperative game has a non empty core afterwards we concentrate on a dynamic situation where several model cost parameters and the retailers dedicated stock levels can change we investigate how the profit division might be affected by these changes we focus on four monotonicity properties we identify several classes of games with retailers where some of the monotonicity properties hold moreover we show that pairs of cooperative games associated with newsvendor situations do not necessarily satisfy these properties in general when changes in dedicated stock levels are in concern

new evidence on sex segregation and sex differences in wages from matched employee employer data we use new matched employer employee data to estimate the contributions of sex segregation and wage differences by sex within occupation industry establishment and occupation establishment cells to the overall sex gap in wages in contrast to earlier data used to study this question our data cover all industries and occupations across all regions of the united states we find that segregation of women into lower paying occupations industries establishments and occupations within establishments accounts for a sizable fraction of the sex gap in wages nonetheless approximately one half of the sex gap in wages remains attributable to the individual s sex

exchange rate fluctuations and immigrants labour market outcomes new evidence from australian household panel data abstract in this paper we exploit plausibly exogenous changes in exchange rates across home countries over time and panel data to identify the causal impact of exchange rate fluctuations on australian immigrants labour market outcomes we present new and robust evidence that unlike immigrants in the us those in australia as a whole do not reduce their yearly labour market outcomes when the local currency appreciates while female immigrants don t adjust their labour activities male immigrants reduce their weekly labour supply and hence earn less when the australian dollar appreciates this work also highlights the importance of controlling for individual heterogeneity as well as gender when modelling the labour market behaviour of immigrants

trade credit and productive efficiency in developing countries abstract in developing countries credit shortages are often so severe as to impact a firm s day to day production decisions using firm level data from five african countries i show supplier credit is positively correlated with capacity utilization the result continues to hold when credit access is instrumented using supplier characteristics i claim that this is because firms lacking credit likely face inventory shortages leading to lower rates of capacity utilization this explanation yields several further predictions that are supported by the data there is a positive relationship between supplier credit and inventory holdings moreover raw materials stockouts are positively correlated with capacity utilization particularly in inventory intensive industries

an inventory model with deteriorating items under inflation when a delay in payment is permissible abstract this study develops an inventory model for initial stock dependent consumption rate when a delay in payment is permissible in the inventory model shortages are not allowed the effect of the inflation rate deterioration rate initial stock dependent consumption rate and delay in payment are discussed in the study mathematical models are also derived under two different circumstances i e case i the credit period is less than or equal to the cycle time for settling the account and case ii the credit period is greater than the cycle time for settling the account besides expressions for an inventory system s total cost are derived for these two cases moreover a computational procedure and gino lasdon et al acm transactions mathematical software 4 1978 34 50 are proposed to obtain the optimal order size and cycle time the results can help managers determine the optimal total cost finally a numerical example demonstrates the applicability of the proposed model

earnings distribution of cuban immigrants in the usa evidence from quantile regression with sample selection abstractthis article analyses the conditional earnings distribution for cuban immigrants in the usa considering buchinsky sample selection in a quantile regression model the test proposed by huber and melly to test the independence between error terms and regressors conditional on the selection probability is also considered this is the first attempt in the migration literature to use quantile regression with sample selection the data used come from the us american community survey the results show that the hypothesis of conditional independence is not rejected and increments in earnings associated with the usual socioeconomic characteristics in labour studies vary between the cohorts considered the main conclusions are that a decline in returns from education may be a sign that a high level of education no longer provides a competitive advantage and that being a black person is associated with substantially lower earnings regardless of the individuals position in the earnings distribution this

population monotonic allocation schemes for cooperative games with transferable utility abstract an allocation scheme for a cooperative game specifies how to allocate the worth of every coalition it is population monotonic if each player s payoff increases as the coalition to which he belongs grows larger we show that essentially a game has a population monotonic allocation scheme pmas if and only if it is a positive linear combination of monotonic simple games with veto control a dual characterization is also provided sufficient conditions for the existence of a pmas include convexity and increasing average marginal contributions if the game is convex its extended shapley value is a pmas classification number 026

the immigrant and native born wage distributions evidence from united states censuses recent studies document a large widening of the immigrant native born mean wage gap since about 1970 a trend that some observers ascribe to post 1965 changes in u s immigration policy these studies are limited however by their exclusive focus on men which ignores important gender differences in the wage gap and by the inadequacy of the mean wage for characterizing the gap when as in recent decades the wage distribution dramatically changes this study of recent immigrants examines changes across the entire wage distribution for both genders the authors find evidence based partly on gender differences that minimum wages strongly influenced the gap a counterfactual analysis also indicates that if recent immigrants in 1970 had faced the 1990 wage structure their wage distribution would have closely resembled that of recent immigrants in 1990 these and other results suggest that the increasing wage gap is linked to changes in the wage structure

cooperation between multiple news vendors with transshipments we study a situation with n retailers each of them facing a news vendor problem i e selling to customers over a finite period of time product with a short life cycle such as fashion groups of retailers might improve their expected joint profit by coordinating their orders followed by transshipments after demand realization is known we analyze these situations by defining a cooperative game called a general news vendor game for such a situation with n retailers we concentrate on whether it makes sense to cooperate by studying properties of general news vendor games our main result states that general news vendor games have non empty cores

do the determinants of employability and earnings returns produce similar outcomes in metropolitan and regional labour markets the case of new south wales australia mallik g basu p k hicks j and sappey r do the determinants of employability and earnings returns produce similar outcomes in metropolitan and regional labour markets the case of new south wales australia regional studies this paper analyses and compares the determinants of employability and earnings return outcomes in two diversified labour markets in australia using advanced econometric techniques to analyse confidentialised unit record files curf data from the 2006 census the paper identifies educational qualifications broad occupational group immigration status and age as the major determinants in general the metropolitan sydney market places a greater value on higher education qualifications than do labour markets in the regions immigrants particularly from non english speaking countries are more likely to be disadvantaged in sydney and ageing provides a mixed impact in regional areas where on average older people work longer but at lower wages

stratification and public utility services in colombia subsidies to households or distortion of housing prices domiciliary public utility services in colombia have a cross subsidy system which charges subsidized rates to the households who live in houses located in strata associated to low wealth levels and taxed rates to the better off we assesses the hypothesis that the flow of subsidies that potentially come from a particular house are discounted by housing market agents so that most of them are transferred to the prices of the houses that generate the subsidies by estimating a hedonic prices model applying a regression discontinuity approach we find that the increment in house value estimated because of subsidies is similar in magnitude to the present value of the flow of subsidies likely effects are found on the rent amount we conclude that subsidies to the poor population through public spending in domiciliary public utility services in colombia is being achieved if anything in a very limited way most of the financial effort on this subject ends up distorting housing relative prices according to socioeconomic strata with an annual cost of up to 0 7 of gdp in supposed gross subsidies to domiciliary public utility services

production inventory games a new class of totally balanced combinatorial optimization games in this paper we introduce a new class of cooperative games that arise from production inventory problems several agents have to cover their demand over a finite time horizon and shortages are allowed each agent has its own unit production inventory holding and backlogging cost cooperation among agents is given by sharing production processes and warehouse facilities agents in a coalition produce with the cheapest production cost and store with the cheapest inventory cost we prove that the resulting cooperative game is totally balanced and the owen set reduces to a singleton the owen point based on this type of allocation we find a population monotonic allocation scheme for this class of games finally we point out the relationship of the owen point with other well known allocation rules such as the nucleolus and the shapley value

does the market value value added evidence from housing prices after a public release of school and teacher value added value added data are an increasingly common evaluation tool for schools and teachers many school districts have adopted these methods and released the results publicly in this paper we study the release of value added data in los angeles by the los angeles times newspaper to identify how measured value added is capitalized into housing prices this analysis is the first in the us school valuation literature to examine property value responses to a value added information shock which is of interest as this measure is less correlated with demographics than typical school quality measures unique to this setting as well is the release of both school and teacher level value added data which allows us to examine how property values respond to both types of information using a difference indifferences methodology surrounding the release we find that neither school nor teacher value added scores are capitalized into home prices our results suggest that despite the contentiousness following these data releases homeowners do not consider value added models as currently constructed to be a relevant school quality measure on the margin

stable farsighted coalitions in competitive markets in this paper we study dynamic alliance formation among agents in competitive markets we look at n agents selling substitutable products competing in a market in this setting we examine models with deterministic and stochastic demand and we use a two stage approach in stage 1 agents form alliances coalitions and in stage 2 coalitions make decisions price and inventory and compete against one another to analyze the stability of coalition structures in stage 1 we use two notions from cooperative games the largest consistent set lcs and the equilibrium process of coalition formation epcf which allow players to be farsighted thus in forming alliances players consider two key phenomena first players trade off the size of the total profit of the system versus their allocation of this total pie and second they weigh the possibility that an immediate beneficial defection can trigger further counter defections that in the end may prove to be worse than the status quo in particular one such example is that of the grand coalition which we show to be stable in the farsighted sense even though players benefit myopically by defecting from it we also provide conditions under which a situation of a few lone players competing against a large coalition is stable we examine the impact of the size of the market n the degree of competition the effect of cost parameters and the variability of the demand process on the prices inventory levels and structure of the market we discuss the possible strategic implications of our results to firms in a competitive market and for new entrants

trade credit for supply chain coordination abstract trade credit is a seller s short term loan to the buyer allowing the buyer to delay payment of an invoice it has been the largest source of working capital for a majority of business to business firms in the united states numerous theories have been proposed to explain trade credit mainly from finance perspectives it has also been an important issue in supply chain management surprisingly most literature in supply chain management has examined the retailer s stocking policies given a supplier s trade credit this paper attempts to shed light on trade credit from a supplier s perspective and presents it as a tool for supply chain coordination specifically we explicitly assume firms financial needs for inventory following a newsvendor framework we assume that the supplier grants trade credit and markdown allowance given the supplier s offer the retailer determines order quantity and the financing option for the inventory either trade credit or direct financing from a financial institution our result shows that the supplier s markdown allowance alone cannot fully coordinate the supply chain if the retailer employs direct financing positive financing costs call for trade credit in order to subsidize the retailer s costs of inventory financing using trade credit in addition to markdown allowance the supplier fully coordinates the retailer s decisions for the largest joint profit and extracts a greater portion of the maximized joint profit

are immigrants favorably self selected one of the standard propositions in the migration literature is that migrants tend to be favorably self selected for labor market success that is economic migrants are described as tending on average to be more able ambitious aggressive entrepreneurial or otherwise more favorably selected than similar individuals who choose to remain in their place of origin in recent years there have been challenges to the general proposition of the favorable selectivity of migrants in addressing this issue this paper considers alternative specifications of the migration model that are relevant for the issue of migrant selectivity excerpt

the dynamics of changes in the female wage distribution in the usa a quantile regression approach this paper examines the female wage structure focusing on changes at different points in the wage distribution newly developed quantile regression methods are used in analysing data from the march current population survey the results show that while the most significant changes for the less skilled women took place at the bottom of the wage distribution for the more skilled groups changes occurred at both ends of the distribution consequently wage inequality decreased for the high school graduates and increased for the younger college graduates furthermore the more highly skilled women experienced the steepest gain in wages regardless of their position in the distribution 1998 john wiley sons ltd

are refugees different from economic immigrants some empirical evidence on the heterogeneity of immigrant groups in the united states this paper analyzes how the implicit difference in time horizons between refugees and economic immigrants affects subsequent human capital investments and wage assimilation the analysis uses the 1980 and 1990 integrated public use samples of the census to study labor market outcomes of immigrants who arrived in the united states from 1975 to 1980 i find that in 1980 refugee immigrants in this cohort earned 6 less and worked 14 fewer hours than economic immigrants both had approximately the same level of english skills the two immigrant groups had made substantial gains by 1990 however refugees had made greater gains in fact the labor market outcomes of refugee immigrants surpassed those of economic immigrants in 1990 refugees from the 1975 1980 arrival cohort earned 20 more worked 4 more hours and improved their english skills by 11 relative to economic immigrants the higher rates of human capital accumulation for refugee immigrants contribute to these findings

formation of alliances in internet based supply exchanges in different industries such as automobiles chemicals or retailing competitors are joining forces in establishing electronic marketplaces to reduce inefficiencies in the purchasing process and cut costs by combining their buying power joining such an alliance leads to reduced costs including those of possible rivals because members share the development and operating costs a company that joins an alliance agrees to share its suppliers with others which may lead to more intense competition among the increased number of suppliers and it may further benefit an alliance member at the expense of companies left outside the alliance natural questions that could arise then are when would a firm prefer to take part in an electronic marketplace joint venture when would it prefer that other firms possibly rivals join the venture and what are the financial consequences of either joining an alliance or remaining independent in an attempt to gain a better understanding of the issues we have developed a model of three retailers whose products may have a certain degree of substitutability we provide some conditions in terms of product substitutability and compatibility of retailers that would lead to the formation of a three member alliance or a two member alliance or no alliance at all we also study the effect of alliance structure and compatibility of retailers on the profit of a company

immigrant earnings relative to what the importance of earnings function specification and comparison points immigrant relative earnings estimates are sensitive to the choice of comparison point and the specification of earnings non sample mean comparisons borjas 1985 understate relative earnings simple earnings specifications linear education quadratic experience overstate relative earnings for both poorly and well educated immigrants specifications which ignore omitted variables understate the relative earnings of poorly educated immigrants and overstate those of well educated ones although measures of assimilation and changes in immigrant quality are insensitive to earnings specification they indicate strong earnings growth for post 1964 immigrants an overall decrease in immigrant quality and an increase in mexican immigrant quality

shipment consolidation who pays for it and how much this paper examines the subject of cost allocation in a multiple product inventory system allowing for consolidation of shipments if we order multiple items using an economic order quantity eoq policy and consolidate shipments part of the ordering cost is shared and part is specific to each item we want to find the consolidation choice with optimal total cost and divide the cost fairly among the individual items such a fair division is central to a costing system in which no group of items subsidizes the others there are no free riders we use a cooperative inventory game to determine when this can be done this game is usually not concave so we want to know what consolidation combinations determine when this cost can be fairly divided using the core of the game we prove that consolidation of all the items is cheaper exactly if there are fair cost allocations core of the game is not empty which happens when the portion of the ordering cost common to all items is not too small we further show how sensitive the nonempty core result is to adjustments in the cost parameters and show how to determine a threshold value for the shared ordering cost which assures the existence of a fair cost allocation

on optimal payment time for a retailer under permitted delay of payment by the wholesaler abstract jamal et al 2000 optimal payment time for a retailer under permitted delay of payment by the wholesaler international journal of production economics 66 59 66 study a wholesaler retailer supply chain where the retailer is given a permissible credit period to pay back the dues without paying any interest to the wholesaler the problem is modeled as a cost minimization problem with two decision variables the payment time p of the retailer and the length of the inventory cycle t while the model represents in general an interesting problem we show in this note that there are a number of nontrivial flaws contained in the development of their model and therefore the solution they derived is not correct we give the correct model and derive the corresponding optimal solution

second order statistical discrimination abstract the low representation of female workers in elite jobs is sometimes attributed to a tail effect if the human capital distribution exhibits less variation among females than among males then even with comparable average human capital there will be fewer females in the right tail than males this paper offers an explanation for why the human capital distribution might have this property we show that the belief that the female human capital distribution has a lower variance than the male distribution can be self fulfilling in that it provides individuals with incentives to invest in human capital such that the resulting distribution exhibits exactly this characteristic if this happens fewer females are employed in high end jobs a glass ceiling effect the average productivity of female workers may at the same time be higher than that of male workers

the effect of minimum wages on immigrants employment and earnings this study examines how minimum wage laws affect the employment and earnings of low skilled immigrants and natives in the u s minimum wage increases might have larger effects among low skilled immigrants than among natives because on average immigrants earn less than natives due to lower levels of education limited english skills and less social capital results based on data from the current population survey for the years 1994 2005 do not indicate that minimum wages have adverse employment effects among adult immigrants or natives who did not complete high school however low skilled immigrants may have been discouraged from settling in states that set wage floors substantially above the federal minimum jel classifications j23 j38 j15

how immigrants fare across the earnings distribution in australia and the united states this paper investigates determinants of the earnings distribution for native born workers and immigrant workers in two countries the authors using data from the 2000 u s census and 2001 australian census employ a methodology quantile regression that facilitates measurement of the native born immigrant earnings differential and the partial effect of explanatory variables such as schooling and experience at each decile of the earnings distribution they find evidence that schooling and labor market experience had stronger earnings effects at higher deciles the native immigrant earnings gap varied by decile and in particular increased in the united states at higher deciles the results suggest that in the united states minimum wages compressed earnings at low deciles whereas in australia the minimum administered wage system compressed earnings across the entire distribution a pattern of higher earnings for immigrants than for the native born at the lowest earnings decile in australia may reflect favorable selectivity in migration

inventory games with permissible delay in payments abstract meca et al 2004 studied a class of inventory games which arise when a group of retailers who observe demand for a common item decide to cooperate and make joint orders with the eoq policy in this paper we extend their model to the situation where retailer s delay in payments is permitted by the supplier we introduce the corresponding inventory game with permissible delay in payments and prove that its core is nonempty then a core allocation rule is proposed which can be reached through population monotonic allocation scheme under this allocation rule the grand coalition is shown to be stable from a farsighted point of view

residential property price differentials of waste plants evidence from beijing china as a primary source of urban pollution waste plants release toxic gases and polluted waste water that can cause great harm to human health and contaminate water resources the adverse impact of wa

transshipment of inventories among retailers myopic vs farsighted stability the author considers a model of a decentralized distribution system consisting of n retailers selling an identical product retailers face a stochastic demand and must order their initial inventory before this demand is realized after demand realization retailers decide how much of their unsold inventory or unsatisfied demand they want to share with other retailers this is followed by a transshipment of leftover inventories and distribution of the additional profit generated through inventory sharing the author addresses the following issue suppose that the retailers distribute the profit from inventory sharing according to an allocation rule that induces retailers to share their residuals in a way that maximizes the additional profit such as the shapley value but may not belong to the core is it likely that in this framework all retailers will jointly share their residuals and not form subcoalitions previous research has looked at this problem from a myopic viewpoint and concluded that the grand coalition is not stable unlike the prior work the author looks at stability in a farsighted sense that is retailers do not consider only their immediate payoffs but are also concerned with reactions of other retailers to their actions in a symmetric setting with identical additional unit revenues from transshipments generated by all retailers farsighted retailers always maximize their allocations by not defecting from the grand coalition the author also provides conditions when the same is true for nonidentical additional unit revenues