Stochastic cooperative games: Superadditivity, convexity, and certainty equivalents

This paper extends the notions of superadditivity and convexity to stochast ic cooperative games. It is shown that convex games are superadditive and h ave nonempty cores, and that these results also hold in the context of NTU games. Furthermore, a subclass of stochastic cooperative games to which one can associate a deterministic cooperative game is considered. It is shown that such a stochastic cooperative game satisfies properties like nonemptin ess of the core, superadditivity, and convexity if and only if the correspo nding deterministic game satisfies these properties. (C) 1999 Academic Pres s.