In cooperative stochastic dynamic games a stringent condition — subgame consistency — is required for a dynamically stable solution. A cooperative solution is subgame consistent if an extension of the solution policy to a situation with a later starting time and any feasible state brought...

In cooperative stochastic dynamic games a stringent condition — that of subgame consistency — is required for a dynamically stable cooperative solution. In particular, a cooperative solution is subgame consistent if an extension of the solution policy to a subgame starting at a later time...

This paper presents a solution formula for the payoff distribution procedure of a bargaining problem in cooperative differential game that would lead to a time consistent outcome. In particular, individual rationality is satisfied for every player throughout the cooperation period.