The consensus value: a new solution concept for cooperative games

By generalizing the standard solution for 2-person games into n-person cases, this paper develops a new solution concept for cooperative games: the consensus value. We characterize the consensus value as the unique function that satisfies efficiency, symmetry, the quasi dummy property and additivity. By means of the transfer property, a second characterization is provided. By defining the stand-alone reduced game, a recursive formula for the value is established. We also show that this value is the average of the Shapley value and the equal surplus solution. Furthermore, we discuss a possible generalization. JEL classification codes: C71; D71; D63.