A Noncooperative Interpretation of Value and Potential

Sergiu Hart and Andreu Mas-Colell

(Acrobat PDF file)

Given a (TU or NTU) game in characteristic form, an auxiliary two-person zero-sum game is presented, whose minimax = maximin value is precisety the potential of the game. In the auxiliary game, one of the players tries to buy off the players of the original game by choosing the order in which to approach them, while the other player sets the price of those players so as to make the expense incurred as high as possible.

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