Prof. YEUNG Wing Kay, DavidDavidProf. YEUNG Wing KayPetrosyan, Leon A.Leon A.Petrosyan2025-11-212025-11-212025International Game Theory Review, 2025, vol. 27(3), pp. 1-21.0219-19891793-6675http://hdl.handle.net/20.500.11861/26111<jats:p> This paper develops a novel dynamic fair gain-sharing cooperative solution that satisfies individual rationality, group optimality, time consistency, and fair-sharing property. A fair gain-sharing principle of cooperative gain is critical to obtaining the agreement of all players to cooperate and the scheme’s sustainability. In particular, the distribution of the cooperative gains reflects the contributions of players. This choice is guided by economic rationality-based arguments and is perceived as fair. An application example in environmental management is provided. </jats:p>enDynamic GamesFair-Sharing PrincipleCooperative SolutionA fair gain-sharing solution of cooperative dynamic gamesPeer Reviewed Journal Article10.1142/S0219198925500082