Cooperative Game Theory

Cooperative game theory is an important area of game theory. In cooperative games, players form coalitions and work together to achieve certain goals. The players basically form groups and then they distribute the amount between them. In cooperative games, players distribute their payoffs. It is called as “coalition game.” Examples of cooperative games include situations where players collaborate in business ventures, share resources, negotiate contracts, or work together to achieve mutual benefits. Solutions for cooperative games, such as the core and Shapley value. Cooperative games give more emphasis to stability and fairness of solution. This chapters presents a number of coordination games, cooperative games, and theoretical concepts of the cooperative games. The chapter also discusses various real-life applications of cooperative game theory.