Cooperative game theory addresses the most fundamental question in any partnership: how do we divide what we create together? When multiple parties collaborate to create value greater than any could achieve alone, how should that value be shared?

The Shapley value, developed by Lloyd Shapley (Nobel 2012), provides a mathematically rigorous answer. It computes each player's average marginal contribution across all possible coalition orderings. The result is provably fair according to axioms of efficiency, symmetry, and additivity.

The Nash bargaining solution, from John Nash's seminal work, shows how two parties should divide a surplus. It maximizes the product of their gains relative to their disagreement point. This elegant solution has profound implications for negotiation strategy.

In this topic, you'll learn to apply these tools to real partnership decisions - equity splits, M&A valuations, joint venture structures, and resource allocation. Fairness can be computed, not just debated.