ECONOMIC STRENGTH IN COOPERATIVE GAMES

Abstract. This paper revisits the concept of power indices to evaluate the economic strength of individual players in a characteristic function game. A strength index is axiomatically derived and is shown to be uniquely de®ned. The strength index satis®es individual rationality for all characteristic function games, including games which are not superadditive. Furthermore, a relationship between the index and the core solution concept is illustrated. 1. Introduction. Th