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Cooperative Game Theory and Its Application

Cooperative Game Theory and Its Application. Raees Hussain And Muhammad.Faizan . Cooperative Game Theory.

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Cooperative Game Theory and Its Application

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  1. Cooperative Game Theory andIts Application RaeesHussain And Muhammad.Faizan.

  2. Cooperative Game Theory In game theory, a cooperative game is a game where groups of players ("coalitions") may enforce cooperative behavior, hence the game is a competition between coalitions of players, rather than between individual players. For example, in political games, parties, or individuals can form coalitions for improving their voting power Cooperative games emphasize participation, challenge, and fun rather than defeating someone. Cooperative games emphasize play rather than competition.

  3. Coalitions Example consider two geographically-separated agents (who never met before) who would like to conduct a financial transaction in exchange. One agent provide the good through mail and other provide payments through electronically. It can be entirely attributed to trust. Let us suppose, however, that the value of the good and the size of the payment are sufficiently high such that no amount of mutual trust allows a direct transaction to take place. To handle this situation, both agents could form a coalition with a mutually trusted third party, such as an bank/agent.

  4. Prisoner Dilemma In Game Theory Prisoner Dilemma is another interesting game, which is usually applying by copes on prisoners.

  5. Cont… Confess/Confess = One year jail/One year jail. Confess/Not Confess = Left/Three year jail. Not confess/Confess = Three year jail/Left. Not confess/Not confess = Three years jail/Three years jail. If they corporate with each then they will bear only one year of jail.

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