A core in Cooperative Game Theory doesn’t have to be a Nash equilibrium. Take a PD game with payoffs (2,2) (-1,3) (3,-1) (0,0). In Cooperative Game Theory, (-1,3) and (3,-1) are not considered improvements that a player can make over (2,2) by acting for himself. Maybe one way to think about it is that there is an agreement phase, and an action phase, and the core is the set of agreements that no subset of players can improve upon by publicly going off (and forming their own agreement) during the agreement phase. Once an agreement is reached, there is no deviation allowed in the action phase.
Again, I’m just learning Cooperative Game Theory, but that’s my understanding and it seems to correspond exactly to your concept.
A core in Cooperative Game Theory doesn’t have to be a Nash equilibrium. Take a PD game with payoffs (2,2) (-1,3) (3,-1) (0,0). In Cooperative Game Theory, (-1,3) and (3,-1) are not considered improvements that a player can make over (2,2) by acting for himself. Maybe one way to think about it is that there is an agreement phase, and an action phase, and the core is the set of agreements that no subset of players can improve upon by publicly going off (and forming their own agreement) during the agreement phase. Once an agreement is reached, there is no deviation allowed in the action phase.
Again, I’m just learning Cooperative Game Theory, but that’s my understanding and it seems to correspond exactly to your concept.
Sounds interesting, thank you.