Lahore Metro Map on Besides proposing an equilibrium for non-cooperative games, Nash addressed the same issue for cooperative games. Suppose that two players are at a status quo level of well-offness and can negotiate so that each would become better off. If ui is the utility or well-offness level of player i, and di is the value of that well-offness in the status quo, then Nash proposed finding the best solution for both players simultaneously by maximizing the following function for players 1 and 2 over the set of possible outcomes: 6. U = (u d)*(u d). Subtracting off the d-levels essentially eliminates any status quo bias in favor of one or the other, to assess what is the maximum improvement that can happen. The multiplicative nature of the function ties the welloffness of each to that of the other. For games with n>2 players, the function in 6) becomes the product of (ui di) for all i. Lahore Metro Map 2016.
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