Self-enforcing_agreement | TriviaQuestions.online

⭐ In the context of cooperative_game_theory, self-enforcing_agreement is considered…

Cooperative games differ from non-cooperative games because they allow for external enforcement of agreements, meaning players don't necessarily need to rely on self-enforcing agreements through credible threats to maintain cooperation.

⭐ Core Definition: Self-enforcing agreement

A self-enforcing agreement is an agreement that is enforced only by the parties to it; no external party can enforce or interfere with the agreement. (In this respect it differs from an enforceable contract.) The agreement will stand so long as the parties believe it is mutually beneficial and it is not breached by any party.

In game theory, games in which cooperative behaviour can only be enforced through self-enforcing agreements are called non-cooperative games, whereas games allowing strategies relying on external enforcement are called cooperative games. Nash equilibrium is the most common kind of self-enforcing agreement.

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👉 Self-enforcing agreement in the context of Cooperative game theory

In game theory, a cooperative or coalitional game is a game with groups of players who form binding "coalitions" with external enforcement of cooperative behavior (e.g. through contract law). This is different from non-cooperative games in which there is either no possibility to forge alliances or all agreements need to be self-enforcing (e.g. through credible threats).

Cooperative games are analysed by focusing on coalitions that can be formed, and the joint actions that groups can take and the resulting collective payoffs.

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