Cooperative Game Theory Model for Sustainable UN Financing: Addressing Global Public Goods Provision

Abstract

This study introduces a novel cooperative game theory model designed to improve the United Nations' current funding mechanisms, which predominantly rely on voluntary contributions. By shifting from a Nash equilibrium framework, where member states act in self-interest, to a cooperative model, the proposed approach aligns each country's financial contributions with the benefits they derive from UN activities. The model ensures a more sustainable and equitable system by introducing personalized pricing based on derived utility. Using agent-based simulations, the research demonstrates that the suggested approach increases global utility, reduces free-rider issues, and creates a more efficient resource allocation system. The findings suggest that the proposed model can optimize UN funding, ensuring a more stable and effective framework for global public goods provision, while considering the varying economic capacities of member states. Further research is recommended to assess the political viability of the model.