In the current course I am doing a comprehensive literature review on "Cooperative Game Theory in the Field of Supply Chain Management". Cooperative game theory arises when more than two parties in the supply chain network come together and form alliances to achieve greater profits than they achieved alone. Over the past few decades, supply chain management has evolved into a very interesting method. research field. This field has recognized that business processes are made up of different entities and decentralized actors where the strategic operational decision of one actor leaves the impact on another actor. If one player in the supply chain chooses his strategy, this changes the individual profits of the other player as well as the total profit of the channel. So, here the concept of game theory comes into play when the economic variable selected by one player leaves an impact on the economic variable of the other player. There are two branches of game theory, namely non-cooperative game theory and cooperative game theory. Both are totally different from each other and follow different methodology and theoretical contents. According to Aumann (1974): "play is an ideal and the cooperative and non-cooperative approaches are two shadows". Non-cooperative game theory arises when different members of the decentralized supply chain make the operational decision to their advantage by observing the action of other players. So in this way each player observes the action of another player and selects the best action from a given set of strategies to optimize their profits and costs. Cooperative game theory comes into the picture when more than two players in the supply chain come together and form alliances to exploit the most… middle of paper… cooperative games lead to specific advantages. Anupindi et al. (2001) consider a game in which multiple retailers stock at their own locations and in several centralized warehouses. In the first phase the retailer decides the level of stocking and in the second phase he decides how much to tranship between warehouse and store to match supply with demand. Taylor (2001) analyzes games between two firms that pool their investments and ability to maximize total inventories. value. In the first phase, companies choose investments that affect the size of the market and in the second phase they negotiate the distribution of the market and profits. Brandenburger and Stuart (2007) proposed a hybrid non-cooperative and cooperative game model, called a biform game. They formalized the concept of business strategy as the action aimed at shaping the competitive environment in a favorable manner.