Stable cooperation in stochastic games

The paper considers stochastic games with random duration in the class of stationary strategies. The cooperative version for such class of stochastic games is constructed, and the cooperative solution is found. The conditions of stable cooperation for stochastic games are obtained. The principles of stable cooperation include three conditions, viz., the subgame consistency (dynamic stability), strategic stability and irrational behavior proofness of the cooperative agreement. And finally, the paper presents an example for which the cooperative agreement is found and the conditions of stable cooperation are checked.