Games, Economies and Fair Allocations

This monograph studies several subjects in the field
of Game Theory. Game Theory models conflict
situations, in which a group of goal-
seeking individuals, each endowed with his own
knowledge, capacities, behavior, likes and dislikes,
interact and thereby jointly generate an outcome. To
attain an outcome, players can either cooperate or
compete with each other. This division is also
reflected in Game Theory. The competitive
nature of interaction is the topic of Non-
cooperative Game Theory. In case players can make
binding agreements with each other, one is dealing
with Cooperative Game Theory. The main focus of Game
Theory is to find solution rules. Solution rules
provide recommendations to the players involved,
telling each of the players how to attain an optimal
outcome. In case of Non-cooperative Game Theory one
tries to formalize the notions of rational behavior
and the concept of equilibrium. In Cooperative
Game theory the main interest is not only knowing
how players cooperate in an optimal way, but also
the problem of how to allocate the proceeds of
cooperation plays an important role.