Dynamic cooperation represents one of the most complex forms of decision-making analysis under uncertainty. The complexity leads to great difficulties in the derivation of dynamically stable solutions. An essential factor for a dynamically stable cooperative solution is availability of a system of transitory compensations leading to a subgame consistent solution. In this paper, we derive and examine the rationale behind the working of transitory compensation by discomposing the subgame consistent payoff distribution.
|Number of pages
|International Journal of Tomography & Statistics
|Published - Sept 2007
- Cooperative Differential Games
- Transitory Compensation
- Subgame Consistency