This paper analyses the principles of stable cooperation for stochastic games. Starting from the non-cooperative version of a discounted, non zero-sum stochastic game, we build its cooperative form and find the cooperative solution. We then analyse the conditions under which this solution is stable. Principles of stability include subgame consistency, strategic stability and irrational behaviour proof of the cooperative solution. We finally discuss the existence of a stable cooperative solution, and consider a type of stochastic games for which the cooperative solution is found and the principles of stable cooperation are checked.

Original languageEnglish
Pages (from-to)601–625
Number of pages25
JournalTheory and Decision
Volume84
Issue number4
DOIs
StatePublished - 2018

    Scopus subject areas

  • Decision Sciences(all)
  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • Applied Psychology
  • Social Sciences(all)
  • Economics, Econometrics and Finance(all)
  • Computer Science Applications

    Research areas

  • Cooperative stochastic game, Irrational behaviour proof, Strategic stability, Subgame consistency, Subgame perfect equilibrium

ID: 9169205