Cooperative game theory

In game theory, a cooperative game (or coalitional game) is a game with groups of players who form binding “coalitions” with external enforcement of cooperative behavior (e.g. through contract law). This is different from non-cooperative games in which there is either no possibility to forge alliances or all agreements need to be self-enforcing (e.g. through credible threats).

Cooperative games are analysed by focusing on coalitions that can be formed, and the joint actions that groups can take and the resulting collective payoffs.