Characteristics of the τ-value and the χ-value

Abstract

In the centre of this paper stands the analysis of two compromise values: the τ-value and the χ-value. This analysis is based on a broad justification program which aims at evaluating game theoretic solution concepts for the problem of the fair distribution of cooperation gains. This justification program consists of six requirements that should be fulfilled by game theoretic solution concepts in order to be able to be convincing from an economic perspective. We show that the τ-value as well as the χ-value mostly, but not completely, fulfill the requirements of this justification program. The χ-value proves to be superior to the τ-value in terms of the existence requirement, i.e. regarding its application range.