A Non-Cooperative Interpretation of Value and Potential

Sergiu Hart & Andreu Mas-Colell

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

January, 1992
Published in: 
In R. Selten (ed.) Rational Interaction (1992) Springer-Verlag 83-93