A Study on the Core of Cooperative Games with Stochastic Payoffs

Abstract

This paper deals with a cooperative game with stochastic payoffs and assumes that the preference of each player is based on a stochastic dominance. A new core based on second degree stochastic dominance, called SSD-core, is defined. Moreover, after a new balanced game, called SSD-balanced game, is defined, it is shown that if the game is SSD-balanced, then the SSD-core of the game is nonempty.