ABSTRACT
This chapter investigates the situation of cooperation between multiple selfish entities, but unlike Chapter 4, in this chapter we study the formation of coalitions, i.e., groups of entities that have a goal as a group and not as individuals; the goal being to increase the group’s payoff. When situations arise that groups must be formed because payoff is paid to a group and not to an individual player, then the main strategical question is how to decide which group to join, or in the case groups are formed from scratch, how to form these groups. It is important to participate in a successful group in order to receive satisfying payoff, since there can be winning and losing groups in coalition games.
