English

Implementations of Cooperative Games Under Non-Cooperative Solution Concepts

Theoretical Economics 2024-04-16 v2

Abstract

Cooperative games can be distinguished as non-cooperative games in which players can freely sign binding agreements to form coalitions. These coalitions inherit a joint strategy set and seek to maximize collective payoffs. When the payoffs to each coalition under some non-cooperative solution concept coincide with their value in the cooperative game, the cooperative game is said to be implementable and the non-cooperative game its implementation. This paper proves that all strictly superadditive partition function form games are implementable under Nash equilibrium and rationalizability; that all weakly superadditive characteristic function form games are implementable under Nash equilibrium; and that all weakly superadditive partition function form games are implementable under trembling hand perfect equilibrium. Discussion then proceeds on the appropriate choice of non-cooperative solution concept for the implementation.

Keywords

Cite

@article{arxiv.2402.14952,
  title  = {Implementations of Cooperative Games Under Non-Cooperative Solution Concepts},
  author = {Justin Chan},
  journal= {arXiv preprint arXiv:2402.14952},
  year   = {2024}
}
R2 v1 2026-06-28T14:57:45.898Z