Cooperative game theory

Cooperative game theory is a way of looking at how groups of people work together. It looks at how different people in the group interact with each other, and what kind of choices they might make when they have to work together to reach a goal. To understand it better, let's use an example.

Say a group of five friends is trying to save up money to buy a video game. They each have different amounts of money, but they all want to save up enough to buy the game. They need to use cooperative game theory to figure out how much each one of them should contribute so that everyone can buy the game.

First, the person with the most money decides how much money they are comfortable contributing, and the person with the least money decides how much money they can contribute. Then, the people in the middle decide how much money they can give. This way, everyone contributes something and eventually all the money adds up to the amount the group needs to buy the game.

Cooperative game theory looks at how different people in a group behave and helps them figure out the best way for them to work together in order to achieve their goal.