Cooperative differential games with pairwise interactions in pollution control problems

This paper establishes a new class of dynamic games which contain two phenomena often observed in real-life, differential network games and pairwise interactions. It is assumed that the vertices of the network are players, and the edges are connections between them. By cooperation, a particular type of characteristic function is introduced. Then, the cooperative solutions are constructed, proportional solution and the Shapley value. Finally, the results are illustrated by an example.