The two level cooperation in a class of N-person differential games

Abstract

In this paper, we consider a coalitional partition of a set of players, N, in which each coalition Si ⊂ N, i = 1,..., m (Si ∩ Si = 0), i ≠ j of players plays against the other coalitions in a nonzero sum cooperative differential game with prescribed duration and non-transferable payoffs. At the same time players within a coalition play a cooperative differential game with prescribed duration and transferrable utility. The solution concept for such type of differential games is proposed and its properties, namely time-consistency or dynamic stability, investigated.