Coalitional Game Theory

Coalitional Game Theory studies how groups of individuals or entities (coalitions) can form and collaborate to achieve shared goals, focusing on how the collective benefits or resources are divided among members. It analyzes the fairness and stability of these arrangements, determining which coalitions are beneficial and how to distribute gains in a way that encourages cooperation. The theory helps understand strategic decision-making in collaborative settings, such as business alliances, political groups, or resource sharing, ensuring that all participants have incentives to work together and stay within stable, mutually advantageous arrangements.