• PERFORMANCE ANALYSIS OF STRATEGIC FORM OF COOPERATIVE GAME THEORY

Abstract

Game theory provides a mathematical basis for the analysis of interactive decision-making processes. It provides tools for predicting what might happen and possibly what should happen when agents with conflicting interests interact. It is not a single monolithic technique, but a collection of modeling tools that aid in the understanding of interactive decision problems. Generally game theory breaks naturally into two parts: (i) Non-cooperative theory (ii) Cooperative theory. A cooperative game is a game in which the players have complete freedom of preplay communication to make joint binding agreements. These agreements may be of two kinds to coordinate strategies or to share payoffs. In non-cooperative game theory, we focus on the individual player’s strategies and their influence on payoffs and try to predict what strategies players will choose (equilibrium concept). In this paper we completely discuss about the performance analysis of strategic form of cooperative game theory.