Non-transferable Utility Games and Coalition Formation Mechanisms - Belief-based Stability in Coalition Formation with Uncertainty - page 13

Chapter 2
Non-transferable Utility Games and
Coalition Formation Mechanisms
Any coalition has its troubles, as
every married man knows.
Arthur Hay Sulzberger
In this chapter, we review some related concepts to the topic.
We begin by reviewing some important stability concepts in
cooperative game theory. Then we will discuss some works in
coalition formation mechanisms and the game theoretic con-
cepts involved in those works.
There are two major sub-fields in game theory, known as
non-cooperative and cooperative games respectively. In non-
cooperative games, individual agents make decisions indepen-
dently aiming to maximise their own utilities in non-cooperative
games. On the other hand, groups of agents come together to
form coalition structures of disjoint coalitions in cooperative
games.
There are two types of cooperative games. The more gen-
eral type is called non-transferable utility cooperative games
(NTU games), and a special case of it is called transferable
utility cooperative games (TU games).