Cooperative differential games

Abstract

In this paper the definition of cooperative game in characteristic function form is given. The notions of optimality principle and solution concepts based on it are introduced. The new concept of “imputation distribution procedure” (IDP) is defined and connected with the basic definitions of time-consistency and strong time-consistency. Sufficient conditions of the existence of time-consistent solutions are derived. For a large class of games where these conditions cannot be satisfied, the regularization procedure is developed and new c.f. constructed. The “regularized” core is defined and its strong time-consistency proved.