International Journal of Game Theory

, Volume 19, Issue 3, pp 301–324 | Cite as

A local theory of cooperative games



In many game-type situations, a global normal form game,u=U(π), is not known, but the matrix of partial derivaties ofU(π), denote it by ∇U(π0), can be observed. To facilitate the analysis of such situations, this study builds a local theory on linear systemdu=∇(π0), which I call a local form game. I introduce core-like local solutions in order to explain the formation of an institution sustainable from a local theoretic viewpoint. I apply my method to the three-country transfer game and characterize locally sustainable transfer agreements in terms of conditions on the underlying economy.


Normal Form Economic Theory Game Theory Local Solution Cooperative Game 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Aumann R (1959) Acceptable Points in General CooperativeN-Person Games, in Contributions to the theory of Games, vol. 4, Tucker AW, Luce RD, eds, Princeton University PressGoogle Scholar
  2. Aumann R (1961) The Core of a Cooperative Game without Side Payments, Transactions of the American Mathematical Society 98, 539–52Google Scholar
  3. Bhagwati J, Brecher R, Hatta T (1983) The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World, American Economic Review 73, 601–18Google Scholar
  4. Gale D (1974) Exchange Equilibrium and Coalition: An Example, Journal of Mathematical Economics 1, 63–66Google Scholar
  5. Jones R (1984) The Transfer Problem in a Three Agent Setting, Canadian Journal of Economics, 1–14Google Scholar
  6. Ichiishi T (1983) Game Theory for Economic Analysis, Academic PressGoogle Scholar
  7. Ichiishi T (1986a) Stable Extensive Game Forms with Perfect Information, International Journal of Game Theory 15, 163–74Google Scholar
  8. Ichiishi T (1986b) The Effectivity Function Approach to the Core, in Contributions to Mathematical Economics (in Honor of Gerard Debreu), Hildenbrand W, Mas-Collel A (eds), North-Holland, 269–93Google Scholar
  9. Ichiishi T (1987) Strong Equilibria, in Nonlinear and Convex Analysis, Proccedings in Honor of Ky Fan (Lecture Notes in Pure and Applied Mathematics, 107), Lin B-L, Simons S (eds), Marcel DekkerGoogle Scholar
  10. Moulin H (1983) The Strategy of Social Choice, North-HollandGoogle Scholar
  11. Moulin H, Peleg B (1982) Cores of Effectivity Functions and Implementation Theory, Journal of Mathematical Economics 10, 115–45Google Scholar
  12. Peleg B (1984) Game Theoretic Analysis of Voting in Committees, Cambridge University PressGoogle Scholar
  13. Rubinstein A (1980) Strong Perfect Equilibrium in Supergames, International Journal of Game Theory 9, 1–12Google Scholar
  14. Scarf H (1971) On the Existence of a Cooperative Solution for a General Class ofN-Person Games, Journal of Economic Theory 3, 169–81Google Scholar
  15. Yano M (1983) The Welfare Aspect of the Transfer Problem, Journal of International Economics 15, 277–289Google Scholar
  16. Yano M (1987) International Transfers: Strategic Losses and the Blocking of a Mutually Advantageous Transfer, International Economic Review, forthcomingGoogle Scholar
  17. Yanovskaya E (1971/72) Core in Noncooperative Games, International Journal of Game Theory 1, 209–15Google Scholar

Copyright information

© Physica-Verlag 1990

Authors and Affiliations

  • M. Yano
    • 1
  1. 1.Faculty of EconomicsYokohama National UniversityYokohamaJapan

Personalised recommendations