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 publicationFrontiers of Dynamic Games
Subtitle of host publicationGame Theory and Management, St. Petersburg, 2018
EditorsLeon A. Petrosyan, Vladimir V. Mazalov, Nikolay A. Zenkevich
Place of PublicationCham
PublisherBirkhäuser Verlag AG
Pages209-230
ISBN (Print)9783030236984
DOIs
StatePublished - 2019

Publication series

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

    Research areas

  • Coalition, Dynamically consistent solution, Imputation distribution procedure, Proportional solution, Shapley value

    Scopus subject areas

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

ID: 48343690