ABSTRACT
Before turning to theories of coalition formation, we need to unambiguously define the n-person games these theories address. Our particular interest is in “cooperative n-person games in characteristic function form with sidepayments,” and each of the terms in that name requires definition and discussion of the assumptions implicitly taken up in accepting the definition. Therefore, this chapter selectively reviews some of the basic concepts of that part of n-person game theory concerned with games in characteristic function form, distinguishing this from other forms, and commenting on the validity and applicability of the assumptions underlying this form. In addition, the relationships of the characteristic function to alternative representations of a game are shown, and major categories of characteristic function games that have captured the attention of social scientists introduced.
