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abovementioned adjustment units Alternative Exchange analysis analyzed assumed assumption bargaining set basic behaviour budget constraint CDH procedure CDH process central agent Champsaur characteristic function coalition H coalition structure convex convex functions coordinate their policies core cost functional decentralized defined definition Differential Games distribution profile economic policy exists feasible program first-stage game follows free-rider Furthermore game theory given global game grand coalition guarantee hence implies incentive compatibility individually rational initial program jk jk Jk Jk jk latter Lemma matrix Ricatti equation non-singular noncooperative equilibrium noncooperative games noncooperative Nash equilibrium Nonzero-Sum outcome Pareto efficient Pareto optimal Pareto optimal set pay-off vectors policy instruments policy program policy-makers positive semi-definite possible preference functions problem Proof redundant players relevant result rules second-stage cooperative game side payments social surplus solution concept stage strategies Theorem tion tive transferable commodity TULKENS utility functions values