Core and Equilibrium Theory

Core and Equilibrium Theory are concepts in cooperative game theory that analyze how to fairly distribute benefits among participants. The "Core" refers to allocations where no group of players can break away and form their own agreement that would make them better off, ensuring stability. "Equilibrium" involves a state where players' strategies or choices are balanced, with no one having an incentive to change their position, leading to a stable outcome. Both theories help in understanding fair division and stable collaborations in economic, political, or social settings.