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The core as a solution to a cooperative game has the advantage that any imputation from it is undominated. In cooperative dynamic games, there is a known transformation that demonstrates another advantage of the core—time consistency—keeping players adhering to it during the course of the game. Such a transformation may change the solution, so it is essential that the new core share common imputations with the original one. In this paper, we will establish the relationship between the original core of a dynamic game and the core after the transformation, and demonstrate that the latter can be a subset of the former.

The Relationship between the Core and the Modified Cores of a Dynamic Game