Compromise for the complaint: an optimization approach to the ENSC value and the CIS value

Abstract

The main goal of this paper is to introduce a new solution concept: the optimal compromise value. We propose two kinds of complaint criteria based on which the optimistic complaint and the pessimistic complaint are defined. Two optimal compromise values are obtained by lexicographically minimizing the optimistic maximal complaint and the pessimistic maximal complaint, respectively. Interestingly, these two optimal compromise values coincide with the ENSC value and the CIS value, respectively. Moreover, these values are characterized in terms of equal maximal complaint property and efficiency. As an adjunct, we reveal the coincidence of the Nucleolus and the ENSC value of 1-convex games.

Keywords:

• Cooperative game
• optimal compromise value
• ENSC value
• CIS value
• equal maximal complaint property

JEL Classifications:

• 91A12
• C71

Notes

Please note this paper has been re-typeset by Taylor & Francis from the manuscript originally provided to the previous publisher.