The time-consistency of optimality principles in SVO-based multistage cooperative games

In this study we consider the time consistency of multistage cooperative games with social value orientation (SVO) in which there is one optimal trajectories with complete information. In dynamic cooperative games, an important condition for the distribution of players’ payoff is that individual rationality needs to be satisfied. If the players’ payoff do not satisfy individual rationality as the game progresses along the cooperative trajectory, some players will deviate from the cooperative trajectory. And SVO can affect player payoffs along a strategy and thus influence cooperation.Therefore, we show the SVO influences the multistage cooperation games with complete information.