Strategically supported cooperation in dynamic games with coalition structures
The problem of strategic stability of long range cooperative agreements in dynamic games with coalition structures is investigated. Based on imputation distribution procedures, a general theoretical framework of the differential game with a coalition structure is proposed. A few assumptions about the deviation instant for a coalition are made concerning the behavior of a group of many individuals in certain dynamic environments. From these, the time consistent cooperative agreement can be strategically supported by e Nash or strong e Nash equilibria. While in games in the extensive form with perfect information, it is somewhat surprising that without the assumptions of deviation instant for a coalition, Nash or strong Nash equilibria can be constructed.