New theory revolutionizes organizational analysis in economics with coordinated strategy-choice.
The article introduces a new research area called cooperative game theory with incomplete information. It focuses on a solution concept called Bayesian incentive compatible strong equilibrium. This theory combines ideas from traditional cooperative game theory and non-cooperative Bayesian game theory to create a model where players make coordinated decisions with individual incentives. The research explores how outsiders' strategies affect coalitions and how incomplete information impacts decision-making. The findings suggest that this theory could be important for understanding how organizations allocate resources. The book also discusses various concepts and limitations of the theory, providing examples to illustrate key points.