What is Cooperative/Non-cooperative?

Cooperative/Non-cooperative is a mental model used for better thinking and decision-making.

How do you apply Cooperative/Non-cooperative?

To apply Cooperative/Non-cooperative, identify situations where this framework is relevant, then use it as a lens to evaluate your options and decisions. The model is most useful when combined with other complementary mental models.

What category does Cooperative/Non-cooperative fall under?

Cooperative/Non-cooperative falls under the Economics & Markets category of mental models. Other models in this category can be found on the Economics & Markets hub page.

Why is Cooperative/Non-cooperative important?

Cooperative/Non-cooperative is important because it provides a structured way to think about problems that would otherwise be approached with intuition alone. Understanding this model helps you avoid common reasoning errors and make better decisions.

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Mental models
Cooperative/Non-cooperative

Economics & Markets

Cooperative/Non-cooperative

Model #0684Category: Economics & MarketsDepth to apply:

4 min read

On this page

Core Idea
How to See It
How to Use It
Founders & Leaders
Connected Models
One Key Quote
Summary & Further Reading

Contents

1. Core Idea
2. How to See It
3. How to Use It
4. Founders & Leaders
5. Connected Models
6. One Key Quote
7. Summary & Further Reading

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Section 1

Core Idea

In game theory, games are cooperative when players can make binding agreements and share payoffs; they are non-cooperative when each player acts independently and no enforceable contracts exist. Most real-world strategic situations are non-cooperative: you can't force the other side to keep a promise. The distinction drives how you model behaviour — in cooperative games we look at coalition value and fair division; in non-cooperative games we look at best responses and equilibrium. Founders constantly face non-cooperative settings: partners, competitors, and customers all act on their own incentives. Seeing which frame applies avoids the error of assuming others will cooperate when they're better off defecting.