The traditional representation of cooperative games with transferable utility is based on a "characteristic" function, specifying for each coalition the amount of utility that its members can ensure themselves in the underlying normal form game. This formulation is meant to isolate coalitional decisions, abstracting from the strategic complexity of the cooperation process. However, unless the payoffs of the members of a coalition and of its complement are independent (orthogonal games) or opposite (constant slim games), the characteristic function fails to be well defined^
This report has been published in Published in: Iowa State Economic Report No. 44/98
Currarini, Sergio and Marini, Marco, "The Core of Games with Stackelberg Leaders" (1998). ISU Economic Report Series. 45.