In a cooperative game represented in an extensive form, how do players typically determine their optimal strategies when they can form binding agreements?

In a cooperative game, players work together to achieve a better outcome than they could on their own. When they can form binding agreements, they discuss their options and decide on strategies that maximize their overall payoff. This often involves negotiating how to share the rewards fairly based on each player's contribution or value to the group. For example, if three friends are sharing a pizza, they might agree that the person who ordered it gets a slightly bigger slice because they took the initiative. By collaborating and making agreements, players can reach a solution that benefits everyone involved, leading to a more favorable outcome than competing individually.