A Concept of Egalitarianism Under Participation Constraints

Abstract

We define a new solution concept for transferable utility cooperative games in characteristic function form, in a framework where individuals believe in equality as a desirable social goal, although private preferences dictate selfish behavior. This latter aspect implies that the solution outcome(s) must satisfy core-like participation constraints while the concern for equality entails choice of Lorenz maximal elements from within the set of payoffs satisfying the participation constraints