An implementation-theoretic approach to non-cooperative foundations

The goal of non-cooperative foundations is to provide credible non-cooperat ive models of negotiation and coalition formation whose equilibrium outcome s agree with a given cooperative solution. Here we argue that this goal is best achieved by explicitly modeling the physical environment and individua l preferences, and by constructing game forms independent of preferences to implement the cooperative solution. We propose a general model of the phys ical environment; we characterize the coalitional functions arising from en vironments via alpha- and beta-effectively; and we take up an issue of "pay off consistency" with special reference to the core. (C) 1999 Academic Pres s.