Economic Theory - Dinko Dimitrov (Saarland U)

Title: Title: Fairness and Cooperation: To Blend In or to Stand Out (with Ching-Jen Sun)

Abstract: We develop a notion of collaborative similarity of games to players and require from a solution for cooperative transferable utility games to assign the same payoff to a player in two games, provided the games are collaboratively similar to him. This requirement, together with the class of partition games serving as a basis of the space of all games, crucially shapes our characterization of the equal division solution. The characterization enables us to pin down the axiomatic 'difference' between the equal division solution and the Shapley value to the complementary ways in which games are similar to players.