Dynamically Consistent Bi-level Cooperation of a Dynamic Game with Coalitional Blocs

Leon A. Petrosyan, David W.K. Yeung

Research outputpeer-review

Abstract

In many real-life scenarios, groups or nations with common interest form coalition blocs by agreement for mutual support and joint actions. This paper considers two levels of cooperation: cooperation among members within a coalition bloc and cooperation between the coalition blocs. Coalition blocs are formed by players with common interests to enhance their gains through cooperation. To increase their gains coalition blocs would negotiate to form a grand coalition. A grand coalition cooperation of the coalitional blocs is studied. The gains of each coalition are defined as components of the Shapley value. Dynamically consistent payoff distributions between coalitions and among players are derived for this double-level cooperation scheme. For definition of players’ gains inside each coalition the proportional solution is used.

Original languageEnglish
Title of host publicationStatic and Dynamic Game Theory
Subtitle of host publicationFoundations and Applications
PublisherBirkhäuser Verlag AG
Pages209-230
Number of pages22
DOIs
Publication statusPublished - 1 Jan 2019

Publication series

NameStatic and Dynamic Game Theory: Foundations and Applications
ISSN (Print)2363-8516
ISSN (Electronic)2363-8524

Fingerprint

Dynamic Games
Coalitions
Dynamic games
Shapley Value
Directly proportional
Scenarios

Scopus subject areas

  • Statistics and Probability
  • Statistics, Probability and Uncertainty
  • Applied Mathematics

Cite this

Petrosyan, L. A., & Yeung, D. W. K. (2019). Dynamically Consistent Bi-level Cooperation of a Dynamic Game with Coalitional Blocs. In Static and Dynamic Game Theory: Foundations and Applications (pp. 209-230). (Static and Dynamic Game Theory: Foundations and Applications). Birkhäuser Verlag AG. https://doi.org/10.1007/978-3-030-23699-1_11
Petrosyan, Leon A. ; Yeung, David W.K. / Dynamically Consistent Bi-level Cooperation of a Dynamic Game with Coalitional Blocs. Static and Dynamic Game Theory: Foundations and Applications. Birkhäuser Verlag AG, 2019. pp. 209-230 (Static and Dynamic Game Theory: Foundations and Applications).
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Petrosyan, LA & Yeung, DWK 2019, Dynamically Consistent Bi-level Cooperation of a Dynamic Game with Coalitional Blocs. in Static and Dynamic Game Theory: Foundations and Applications. Static and Dynamic Game Theory: Foundations and Applications, Birkhäuser Verlag AG, pp. 209-230. https://doi.org/10.1007/978-3-030-23699-1_11

Dynamically Consistent Bi-level Cooperation of a Dynamic Game with Coalitional Blocs. / Petrosyan, Leon A.; Yeung, David W.K.

Static and Dynamic Game Theory: Foundations and Applications. Birkhäuser Verlag AG, 2019. p. 209-230 (Static and Dynamic Game Theory: Foundations and Applications).

Research outputpeer-review

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Petrosyan LA, Yeung DWK. Dynamically Consistent Bi-level Cooperation of a Dynamic Game with Coalitional Blocs. In Static and Dynamic Game Theory: Foundations and Applications. Birkhäuser Verlag AG. 2019. p. 209-230. (Static and Dynamic Game Theory: Foundations and Applications). https://doi.org/10.1007/978-3-030-23699-1_11