Transforming Strategic Games into Biform Games: Applications in Allocation Mechanisms and Green Technology Investment

As Aumann stated, cooperation and non-cooperation are different ways of viewing the same game, with the main difference being whether players can reach a binding cooperative agreement. In the real world, many games often coexist competition and cooperation. Based on the above reasons, we propose a method to transform strategic games into a biform game model, which retains the characteristics of cooperative games while considering the ultimate goal of players to maximize their own interests. Furthermore, based on this biform game model, we analyze the impact of two different distribution methods, namely marginalism and egalitarianism, on the game results. As an application, we analyze how food producers seek maximum profits through cooperative pricing.