Transformations of normal form games by preplay offers for payments among players

Abstract

We consider transformations of normal form games by binding preplay offers of players for payments of utility to other players conditional on them playing designated in the offers strategies. The game-theoretic effect of such preplay offers is transformation of the payoff matrix of the game by transferring payoffs between players. Here we analyze and completely characterize the possible transformations of the payoff matrix of a normal form game by sets of preplay offers.