APPLICATIONS OF BIFORM GAMES

Traditional game theory is divided into non-cooperative and cooperative models. Biform games combine non-cooperative and cooperative models. There are a number of situations where the competitive and cooperative behaviors of decision-makers are combined. The paper is devoted to the analysis of some specific situations in which these behaviors occur and biform game models can be used. The sequential biform game is used in supply chains. In the non-cooperative part, a coordination mechanism based on a specific contract is applied between producers and customers. The cooperative part is merely focused on two concepts, coalition formations by resource capacity constraints and profit sharing. The second application is focused on co-opetition models. The players in the co-opetition model are the firm, customers, suppliers, competitors and complementors (competitors whose products add value). The relationship between the firm and the direct competitors is non-cooperative. The relationship between the firm and the complementors in a search for common added values is cooperative. The last example of a biform game application is an environmental subsidy negotiation where polluters behave in a cooperative way to obtain a subsidy from the authority for a joint action while competing with the distribution of this subsidy among themselves.