The unique fair sharing in static and dynamic cooperative games (Q944418)

The author discusses some problems of cooperative strategies in non-zero sum dynamic games. Some drawbacks of the classical von Neumann-Morgenstern theory of cooperative equilibrium are presented and especially a problem of variety of different solutions sharings is considered in details. The author claims that the von Neumann-Morgenstern theory is unsatisfactory and solutions found basing on the domination axiom are meaningless from the practical point of view. Instead the author proposes to use different strongest equilibria for finding the sharing of the cooperative profit. Moreover new types of equilibria are defined and used to define a fair reasonable compromise. Some examples are presented to illustrate the proposed ideas for differential games.