Payment schemes for cooperative stochastic games

The paper examines cooperative stochastic games with random duration and the problem of sustaining cooperation over time. The duration of the game is finite and determined by a given probability distribution. We apply the payment scheme approach to sustain cooperative behaviour over time considering a new stochastic game with modified payoff functions satisfying some desirable properties. We propose two payment schemes to assure cooperation in the class of discrete-time stochastic games. These payment schemes are constructed based on the dynamic individual rationality, stability against individual deviation, efficiency and other properties.