actions that groups will take, and the resulting collective payoffs. Cooperative game theory does not analyze the strategic bargaining that occurs within each coalition and affects the distribution of the collective payoff between the members. Non-cooperative game theory provides a low-level approach as it models all the procedural details of the game, whereas cooperative game theory only describes the structure, strategies and payoffs of coalitions. Therefore, cooperative game theory is referred to as coalitional, and non-cooperative game theory is procedural. Non-cooperative game theory is in this sense more inclusive than cooperative game theory. It is also more general, as cooperative games can be analyzed using the terms of non-cooperative game theory. Where arbitration is available to enforce an agreement, that agreement falls outside the scope of non-cooperative theory: but it may be possible to state sufficient assumptions to encompass all the possible strategies players may adopt, in relation to arbitration. This will bring the agreement within the scope of non-cooperative theory. Alternatively, it may be possible to describe the arbitrator as a party to the agreement and model the relevant processes and payoffs suitably. Accordingly, it would be desirable to have all games expressed under a non-cooperative framework. But in many instances insufficient information is available to accurately model the formal procedures available to the players during the strategic bargaining process; or the resulting model would be of too high complexity to offer a practical tool in the real world. In such cases, cooperative game theory provides a simplified approach that allows analysis of the game at large without having to make any assumption about bargaining powers. The difference between cooperative and non-cooperative game theory There is a distinction between cooperative game theory and non-cooperative game theory, which follows Nash's statement: “This (cooperative game) theory is based on an analysis of the interrelationships of the various coalitions which can be formed by the players of the game. Our (non-cooperative game) theory, in contradistinction, is based on the absence of coalitions in that it is assumed that each participant acts independently, without collaboration or communication with any of the others.” Non-cooperative game theory models situations in which agents cannot reach a binding agreement that enforces some action on one another. This theory has winners and losers in each case, and yet agents may end up in Pareto-inferior outcomes, where every agent is worse off and there is an potential outcome for