Article ID: | iaor2003661 |
Country: | Germany |
Volume: | 30 |
Issue: | 2 |
Start Page Number: | 147 |
End Page Number: | 165 |
Publication Date: | Jan 2001 |
Journal: | International Journal of Game Theory |
Authors: | Peleg B., Hougaard J.L. |
This paper considers the set of Lorenz-maximal imputations in the core of a balanced cooperative game as a solution concept. It is shown that the Lorenz-solution concept satisfies a number of suitable properties such as desirability, continuity and the reduced game property. Moreover, the paper considers alternative characterizations where it is shown that Lorenz-fairness is tantamount to the existence of an additive, strictly increasing and concave social welfare function. Finally the paper also provides axiomatic characterizations as well as two examples of application.