 The basics of this theory are very well presented in Moulin (1988) and Myerson (1991). Cooperative games are distinguished from non-cooperative games by the fact that the players can commit to an agreement, whereas in a non-cooperative game every player always seeks his interest and never commits to a particular strategy. The central concept of the theory of non-cooperative games is the Nash equilibrium (every player chooses his best strategy, taking others’ strategies as given), which has nothing to do with Nash’s bargaining solution. It has been shown, however, that Nash’s bargaining solution can be obtained as the Nash equilibrium of a non-cooperative bargaining game, in which players make offers alternatively, and accept or reject the other’s offer.