Chapter 26, Problem 7P

To determine

The outcomes of a cooperative and a non-cooperative game for the crowd of a football match.

Concept Introduction

Cooperative Game: Cooperative games are defined in terms of a characteristic function, which specifies the outcome that each coalition can achieve for itself. Simply put, in a cooperative game the focus is not on strategy of the individual player, but not on the coalition that players may form. It is assumed that the coalition will have some pay-off and efforts are made to predict which coalition will be formed and what payoffs will be attained.

Non-Cooperative Game: The focus in non-cooperative game is on the strategy of an individual player and his impact on the payoff. The game tries to predict what strategy the player is likely to choose.

Tit-For-Tat Strategic Behaviour: In the tit-for-tat strategy, the player chooses to cooperate in the first round. In the next and subsequent rounds of play, the player chooses the action that the other player chose in the previous round.