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Blend-in Fairness and Equal Split

Dinko DIMITROV and Ching-Jen Sun

Microeconomics Seminar
joint with the Département de sciences économiques, Université de Montréal
room C-6149 (U. de Montréal, Pavillon Lionel-Groulx, 3150, rue Jean-Brillant)
Organizer : Lars Ehlers (U. de Montréal)

Abstract : Blending in with others is a possible self-serving motivation when people participate in cooperative situations. We use this motivation to formulate a corresponding fairness principle, combine it with rather weak standard axioms from cooperative game theory, and show that it leads to equal split of coalitional gains. 

The same normative principles characterize this solution when only cohesive games (where it is optimal for the coalition of all players to form) are considered.