Game Theory Lecture Notes by Cooperative Game Theory the Core

Abstract

Note: This is a only a draft version, so there could be flaws. If you find any errors, please do send email to hari@csa.iisc.ernet.in. A more thorough version would be available soon in this space. Given a transferable utility game (N, v), there are two key questions that are of fundamental interest: (1) Which coalition(s) should form? (2) How should a coalition that forms divide its winnings among its members? An answer to the second question has implications for the first question. In this chapter, we start studying the answers to these questions using one of the central notions, the core, in cooperative game theory.