IDP-Core: Novel Cooperative Solution for Differential Games

Abstract

IDP-core is a new cooperative solution for dynamic and differential games. A novel approach of constructing solutions for dynamic and differential games was employed in which the time consistency property was used as the main axiom property for the cooperative solution. Another new and important approach used for constructing IDP-core is the IDP dominance, which allows to select undominated imputation distribution procedures and construct the cooperative solution or imputation set. This approach shows the potential of using the time consistency property as the main axiom for solutions in various fields such as Social Choice and Mechanism Design. The overall procedure for defining the cooperative solution is also new since IDP-core was constructed using imputation distribution procedures but not by using imputations directly.