In this paper we propose a new method to associate a coalitional game with each strategic game. The method is based on the lower value of matrix games. We axiomatically characterize this new method, as well as the method that was described in von Neumann and Morgenstern (1944). As an...

This paper analyses the role of transfer payments and strategic con tracting within two-person strategic form games with monetary pay-offs. First, it introduces the notion of transfer equilibrium as a strategy combination for which individual stability can be supported by allowing the...

In this paper we introduce and analyse, from a game theoretical perspective, several multi-agent or multi-item continuous review inventory models in which the buyers are exempted from ordering costs if the price of their orders is greater than or equal to a certain amount. For all models we...

A centralized inventory problem is a situation in which several agents face individual inventory problems and make an agreement to coordinate their orders with the objective of reducing costs. In this paper we identify a centralized inventory problem arising in a farming community in...

In this paper we introduce games with optimistic aspirations and identify attractive allocation rules for such games through axiomatizations. A game with optimistic aspirations specifies two values for each coalition of players: the first value is the worth that the players in the coalition can...