UNIVERSITAT ROVIRA I VIRGILI DEPARTAMENT D’ECONOMIA  WORKING PAPERS Col·lecció “DOCUMENTS DE TREBALL DEL DEPARTAMENT D’ECONOMIA - CREIP” On the existence of the Dutta-Ray’s egalitarian solution Francesc Llerena Llúcia Mauri Document de treball n.14- 2016 DEPARTAMENT D’ECONOMIA – CREIP Facultat d’Economia i Empresa UNIVERSITAT ROVIRA I VIRGILI DEPARTAMENT D’ECONOMIA  Edita: Departament d’Economia www.fcee.urv.es/departaments/economia/publi c_html/index.html Universitat Rovira i Virgili Facultat d’Economia i Empresa Av. de la Universitat, 1 43204 Reus Tel.: +34 977 759 811 Fax: +34 977 758 907 Email: sde@urv.cat CREIP www.urv.cat/creip Universitat Rovira i Virgili Departament d’Economia Av. de la Universitat, 1 43204 Reus Tel.: +34 977 758 936 Email: creip@urv.cat Adreçar comentaris al Departament d’Economia / CREIP ISSN edició en paper: 1576 - 3382 ISSN edició electrònica: 1988 - 0820 DEPARTAMENT D’ECONOMIA – CREIP Facultat d’Economia i Empresa On the existence of the Dutta-Ray’s egalitarian solution Francesc Llerena and Llúcia Mauri∗ Abstract A class of balanced games, called exact partition games, is introduced. Within this class, it is shown that the egalitarian solution of Dutta and Ray (1989) behaves as in the class of convex games. Moreover, we provide two axiomatic characterization by means of suitable properties such as consistency, rationality and Lorenz-fairness. As a by-product, alternative characterizations of the egalitarian solution over the class of convex games are obtained. 1 Introduction On the domain of transferable utility coalitional game (TU-games, for short), several solution concepts have been motivated by the idea of egalitarianism. One of the best known is the weak constrained egalitarian solution (WCES, for short), introduced by Dutta and Ray (1989). This solution is defined in a setting where agents believe in equality as a desirable social goal, but their individual preferences dictate selfish behavior. The WCES yields, whenever it exists, the unique Lorenz-maximal imputation within the Lorenz core, which is a proper extension of the core. Although this is a sharp result because the Lorenz domination generates a partial ranquing, this solution lacks general existence properties. In fact, the class of convex games (Shapley, 1971) is the only standard class of TU-games where its existence is guaranteed. On this domain, Dutta and Ray (1989) describe an algorithm for finding their egalitarian allocation and show that it belongs to the core and Lorenz dominates every other core element. Unfortunatly, several examples in the same paper show that, in a general domain, these assertions are not true: there are games with a nonempty core where the WCES does not exist, and vice-versa; games where both the core and the WCES exist but the latter does not lie in the core, or games where the WCES belongs to the core but does not ∗ Dep. de Gestió d’Empreses, Universitat Rovira i Virgili-CREIP, e-mail: francesc.llerena@urv.cat (Francesc Llerena), llucia.mauri@urv.cat (Llúcia Mauri). Lorenz dominate every other core element. On the domain of balanced games, an alternative route, already suggested by Dutta and Ray (1989) and latter adopted by Arin and Iñarra (2001) and Hougaard et al. (2001), is to focus on the Lorenz maximal allocations within the core. A problem with this solution concept is that it is not single-valued. To overcome this drawback, Arin and Iñarra (2001) and Arin et al. (2003) propose single-valued solutions which are derived from the application of the Rawlsian criterion on the core. On the domain of convex games all these solution concepts produce the same outcome. A review of the proofs of Theorems 2 and 3 in Dutta and Ray (1989) shows that weaker conditions than convexity are enough to guarantee that their egalitarian solution behaves as in convex games. With this objective, in Section 3 we introduce a subclasses of balanced games called exact partition games. This class of games is rich enough to include convex games and dominant diagonal assignment games (Solymosi and Raghavan, 2001), but also nonsuperadditive games. Within this class, in Section 4 we provide two axiomatic characterization of the WCES by means of suitable properties such as consistency (à la Davis and Maschler, 1965), rationality and two new properties inspired by the notion of stable sets of von Neumann and Morgensten, but changing the usual order in RN by the Lorenz order. As particular cases, we obtain alternative characterizations of the WCES over the domain of convex games, and of the set of Lorenz maximal allocation within the core over the domain of balanced games. Some final remarks conclude the paper. We begin with notation and terminology. 2 Notation and terminology The set of natural numbers N denotes the universe of potential players. A coalition is a non-empty finite subset of N and let N := {N | ∅ = N ⊆ N, |N | < ∞} denote the set of all coalitions of N. A TU-game (a game) is a pair (N, v) where N ∈ N is the set of players and v : 2N −→ R is the characteristic function that assigns to each coalition S ⊆ N a real number v(S), with the convention v(∅) = 0. Given S, T ∈ N , we use S ⊂ T to indicate strict inclusion, that is, S ⊆ T but S = T . By |S| we denote the cardinality of the coalition S ∈ N . By Γ we denote the class of all games. Given N ∈ N , let RN stand for the space of real-valued vectors indexed by N , x = (xi )i∈N , and for all S ⊆ N , x(S) = i∈S xi , with the convention x(∅) = 0. For each x ∈ RN and T ⊆ N , x|T denotes the restriction of x to T : x|T = (xi )i∈T ∈ RT . Given two vectors x, y ∈ RN , x ≥ y if xi ≥ yi , for all i ∈ N . We say that x > y if x ≥ y and for some j ∈ N , xj > yj . Let (N, v) be a game and S ⊆ N , S = ∅. A coalition S is an equity coalition of (N, v) if S ∈ Argmax∅=R⊆N v(R) . |R| In addition, S is a maximal (w.r.t. inclusion) equity coalition of (N, v) if S ∈ Argmax∅=R⊆N v(R) and there is no T ∈ Argmax∅=R⊆N v(R) such that |R| |R| 2 S ⊂ T . Given N , a set π = {P1 , . . . , Pm }, where Pi ⊆ N for all i ∈ {1, . . . , m}, with m ≤ |N |, is a partition of N if the following conditions hold: (i) Pi = ∅ for all i ∈ {1, . . . , m}, (ii) ∪m Pi = N , and (iii) Pi ∩ Pj = ∅, for all i, j ∈ {1, . . . , m}, i=1 i = j. The set of feasible payoff vectors of a game (N, v) is defined by X ∗ (N, v) := {x ∈ RN | x(N ) ≤ v(N )}. A solution on a class of games Γ ⊆ Γ is a mapping σ which associates with each game (N, v) ∈ Γ a subset σ(N, v) of X ∗ (N, v). Notice that σ is allowed to be empty. A solution on a class of games Γ ⊆ Γ is said to be single-valued if |σ(N, v)| = 1 for all (N, v) ∈ Γ . Two games (N, v) and (N, v ) are strategically equivalent if there is a vector (d1 , . . . , dn ) ∈ RN and α > 0 such that for all coalitions S ⊆ N , v (S) = α v(S) + i∈S di . A solution σ on Γ ⊆ Γ satisfies covariance if for all two strategically equivalent games (N, v), (N, v ) ∈ Γ , σ(N, v ) = α σ(N, v) + i∈N di . The pre-imputation set of (N, v) is defined by X(N, v) := {x ∈ RN | x(N ) = v(N )}, and the set of imputations by I(N, v) := {x ∈ X(N, v) | xi ≥ v({i}), for all i ∈ N }. The core of (N, v) is the set of those imputations where each coalition gets at least its worth, that is, C(N, v) = {x ∈ X(N, v) | x(S) ≥ v(S) for all S ⊆ N }. A game (N, v) is balanced if it has a non-empty core. By ΓBal we denote the class of balanced games. A game (N, v) is superadditive if, for every S, T ⊆ N, S ∩ T = ∅, v(S) + v(T ) ≤ v(S ∪ T ). A game (N, v) is convex if, for every S, T ⊆ N , v(S) + v(T ) ≤ v(S ∪ T ) + v(S ∩ T ). By ΓCon we denote the class of convex games. Recall that ΓCon ⊂ ΓBal . Given N ∈ N , and for any x ∈ RN , let us denote by x = (ˆ1 , . . . , xn ) the ˆ x ˆ vector obtained from x by rearranging its coordinates in a non-increasing order, that is, x1 ≥ x2 ≥ . . . ≥ xn . In a similar way, for ∅ = T ⊆ N, x|T denotes ˆ ˆ ˆ the vector obtained from the restriction of x to T ordering its coordinates in a non-increasing way: x|T 1 ≥ x|T 2 ≥ . . . ≥ x|T t , where t = |T |. For any two vectors y, x ∈ RN with y(N ) = x(N ), we say that y Lorenz dominates x, denoted by y L x, if k yj ≤ k xj , for all k ∈ {1, . . . , |N |}, with at least j=1 ˆ j=1 ˆ one strict inequality. Given a coalition S ∈ N and a set A ⊆ RS , EA denotes the set of allocations that are Lorenz undominated within A. That is, EA := {x ∈ A | y ∈ A such that y L x} . Given a game (N, v), the Lorenz core is defined in a recursive way as follows. The Lorenz core of a singleton coalition is L({i} , v) = {v({i})}. Now suppose that the Lorenz core for all coalitions of cardinality k or less have been defined, where 1 < k < |N |. The Lorenz core of a coalition S ⊂ N of size (k + 1) is defined by L(S, v) = x ∈ RS | x(S) = v(S) and T ⊂ S and y ∈ EL(T, v) such that y > x|T . Note that, for all S ⊆ N, C(S, v) ⊆ L(S, v). The weak constrained egalitarian solution (WCES) (Dutta and Ray, 1989), denoted by EL, selects the vectors that are Lorenz undominated within the Lorenz core. For all (N, v) ∈ Γ, |EL(N, v)| ≤ 1 (Dutta and Ray,1989). The 3 constrained egalitarian solution, denoted by CE, is a single-valued solution defined for two person games as follows: let (N, v) be a game with N = {i, j} and suppose, without loss of generality, v(i) ≤ v(j), then CEj (N, v) = max v(N ) , v(j) 2 and CEi (N, v) = v(N ) − CEj (N, v). The next two observations will be useful to prove our results. Remark 1. (Hougaard et al. 2001 p. 153) Let N be a finite set of players, and let S ⊆ N , S = ∅. If xS , yS ∈ RS , xS (S) = yS (S) and zN \S ∈ RN \S , then xS Lorenz dominates yS if and only if xS , zN \S Lorenz dominates yS , zN \S . Remark 2. Let N be a finite set of players, c ∈ R and (x1 , . . . , xn ) ∈ RN . It is well-known that if i∈N xi = nc, then x is Lorenz dominated by (c, . . . , c) ∈ RN . If i∈N xi > nc, let = i∈N xi − nc and define x = (x1 − n , . . . , xn − n ). Note that x i = xi − n < xi , for all i ∈ N . Thus, x is Lorenz dominated by (c, . . . , c) which implies, for all k = 1, . . . , n, x1 + . . . + xk > x 1 + . . . + x k ≥ kc. ˆ ˆ 3 Exact partition games On the domain of convex games, Dutta and Ray (1989) show that the WCES picks the payoff vector that is obtained by the following algorithm. Let (N, v) be a convex game and EL(N, v) = {x}. Step 1: Define v1 = v. Then find the unique coalition T1 ⊆ N such that for all T ⊆ N , (i) v1 (T1 ) ≥ v1 (T ) , and (ii) if v1 (T1 ) = v1 (T ) and T = T1 , then |T1 | > |T |. |T1 | |T | |T1 | |T | Uniqueness of such a coalition is guaranteed by convexity of (N, v). For all i ∈ T1 , xi = v1 (T1 ) . |T1 | Step k: Suppose that T1 , . . . , Tk−1 have been defined. Let Nk = N \ {T1 ∪ . . . ∪ Tk−1 } and let (Nk , vk ) be the marginal game defined as follows: vk (S) := v(T1 ∪ . . . ∪ Tk−1 ∪ S) − v(T1 ∪ . . . ∪ Tk−1 ), (1) for all S ⊆ Nk . It can be shown that (Nk , vk ) is convex. Then find the unique coalition Tk ⊆ Nk such that for all T ⊆ Nk , (i) vk (Tk ) ≥ vk (T ) , and (ii) if vk (Tk ) = vk (T ) and T = Tk , |Tk | |T | |Tk | |T | then |Tk | > |T |. For all i ∈ Tk , xi = vk (Tk ) v(T1 ∪ . . . ∪ Tk ) − v(T1 ∪ . . . ∪ Tk−1 ) = . |Tk | |Tk | By construction, the WCES satisfies the following conditions: if π = (T1 , . . . , Tt ) is the ordered partition of N induced by EL(N, v) = {x}, then 4 • (C1): xi = xj for all i, j ∈ Tk and k = 1, . . . , t, • (C2): x(T1 ∪ . . . ∪ Tk ) = v(T1 ∪ . . . ∪ Tk ), for all k = 1, . . . , t, • (C3): xi > xj if i ∈ Tk , j ∈ Th , and k < h ≤ t. The idea underlying this procedure is that agents in the unique maximal (w.r.t. inclusion) coalition T1 maximizing the average worth v(T11|) share equally the amount |T v(T1 ) among them and leave the game. Then, the remaining agents N \ T1 play a suitable reduced convex game where, again, agents in the unique maximal coalition with highest average worth divide its worth equally among its members. The process stops when all agents have been paid. Theorem 2 in Dutta and Ray (1989) states that the output of this algorithm is the WCES and that it belongs to the core. Theorem 3 in the same paper tells us that, for convex games, the WCES Lorenz dominates every other core element. Nevertheless, an analysis of the proofs of the aforementioned results reveals that much weaker conditions than convexity are sufficient to guarantee the same results. Definition 1. Let N = {1, . . . , n} be a finite set of players and x ∈ RN . We define the ordered partition of N induced by x, π = (N1 , . . . , Nm ), as follows: N1 = {i ∈ N | xi ≥ xk for all k ∈ N } , N2 = {i ∈ N \ N1 | xi ≥ xk for all k ∈ N \ N1 } , . . . Nm = {i ∈ N \ N1 ∪ . . . ∪ Nm−1 | xi ≥ xk for all k ∈ N \ N1 ∪ . . . ∪ Nm−1 } . Theorem 1. Let (N, v) be a balanced game, x ∈ C(N, v) and let π = (N1 , . . . , Nm ) be the ordered partition of N induced by x. If x (N1 ∪ . . . ∪ Nk ) = v (N1 ∪ . . . ∪ Nk ), for all k = 1, . . . , m, then EL (N, v) = {x} and x L y, for all y ∈ C (N, v) \ {x}. Proof. First we show that x L y, for all y ∈ C (N, v) \ {x}. Assume, without loss of generality, that x1 ≥ x2 ≥ . . . ≥ xn . Then, the vector obtained from x by rearranging its coordinates in non-increasing order is x = x. Let us denote ck =  v(N ) 1   |N1 |  if k = 1  v(N ∪...∪N ∪N )−v(N ∪...∪N )  1 1 k−1 k k−1  |Nk | if k > 1 for all k = 1, . . . , m, (m > 1). Notice that xi = ck for all i ∈ Nk and k = 1, . . . , m. Let y ∈ C (N, v), y = x. From Remark 1 we may suppose, without loss of generality, xi = yi for all i ∈ N . Since y(N1 ) ≥ v(N1 ) = x(N1 ) = c1 |N1 |, and by Remark 2, we have that for all t = 1, . . . , |N1 |, tc1 ≤ y|N1 1 + . . . + y|N1 t , (2) 5 with at least one strict inequality. Next we are going to prove that, for all t = 1, . . . , |N2 |, x(N1 ) + tc2 ≤ y(N1 ) + y|N2 1 + . . . + y|N2 t . (3) If y(N2 ) ≥ x (N2 ) = |N2 |c2 , again by Remark 2, tc2 ≤ y|N2 1 + . . . + y|N2 t , for all t = 1, . . . , |N2 |. This set of inequalities, together with (2), lead to expression (3). If y(N2 ) < x(N2 ), let us denote ϕ1 = y(N1 ) − x(N1 ) ≥ 0 and β1 = x(N2 ) − β y(N2 ) > 0. Let z ∈ RN2 defined as zi = yi + |N1 | for all i ∈ N2 . Since x(N2 ) = 2 β y(N2 ) + β1 = z(N2 ), by Remark 2 we have c2 ≤ z1 = y|N2 1 + |N1 | ≤ y|N2 1 + β1 , ˆ 2 which implies β1 ≥ c2 − y|N2 1 . This last inequality, together with y (N1 ∪ N2 ) ≥ v (N1 ∪ N2 ) = x (N1 ∪ N2 ) , lead to ϕ1 = y(N1 ) − x(N1 ) ≥ x(N2 ) − y(N2 ) = β1 ≥ c2 − y|N2 1 . (4) Now from (4) it follows x(N1 ) + c2 ≤ y(N1 ) + y|N2 1 . (5) |N2 | If |N2 | ≥ 2 and y|N2 i ≥ (|N2 | − 1) c2 , then from Remark 2, tc2 ≤ y|N2 2 + . . . + i=2 y|N2 t+1 , for all t = 1, . . . , |N2 |−1, which leads, together with (5), to (3). Otherwise, |N2 | if |N2 | ≥ 2 and y|N2 i < (|N2 | − 1) c2 , let us denote i=2 |N2 | ϕ2 = y(N1 ) + y|N2 1 − x(N1 ) − c2 and β2 = (|N2 | − 1) c2 − y|N2 i > 0. i=2 From (4) it follows ϕ2 ≥ β2 > 0. Next we show that β2 ≥ c2 − y|N2 2 . Choose 2 k ∈ N2 such that yk ≥ yi for all i ∈ N2 and define z ∈ RN2 \{k} as zi = yi + |Nβ|−1 2 for all i ∈ N2 \ {k}. Since z(N2 \ {k}) = y(N2 \ {k}) + β2 = x(N2 ) − c2 , by Remark 2 2 we have c2 ≤ z1 = y|N2 2 + |Nβ|−1 ≤ y|N2 2 + β2 , which implies β2 ≥ c2 − y|N2 2 . ˆ 2 Since ϕ2 ≥ β2 , we obtain ϕ2 ≥ c2 − y|N2 2 . (6) Now from (6) it can be checked that x(N1 ) + 2c2 ≤ y(N1 ) + y|N2 1 + y|N2 2 . Applying the same reasoning for t = 3, . . . , |N2 | we obtain (3). Following the same line of argument it can be proved that, for all k = 3, . . . , m and all t = 1, . . . , |Nk |, t x (N1 ∪ . . . ∪ Nk−1 ) + tck ≤ y (N1 ∪ . . . ∪ Nk−1 ) + y|Nk j . j=1 6 (7) Finally, combining (2), (3) and (7) we get x1 = c1 ≤ y|N1 1 ≤ y1 x1 + x2 = 2c1 ≤ y|N1 1 + y|N1 2 ≤ y1 + y2 . . . x1 + . . . + x|N1 | = x(N1 ) ≤ y(N1 ) ≤ y1 + . . . y|N1 | x1 + . . . + x|N1 |+1 = x(N1 ) + c2 ≤ y(N1 ) + y|N2 1 ≤ y1 + . . . y|N1 |+1 . . . x1 + . . . + x|N1 |+|N2 | = x (N1 ∪ N2 ) ≤ y (N1 ∪ N2 ) ≤ y1 + . . . y|N1 |+|N2 | . . . x1 + . . . + xn = x (N1 ∪ . . . ∪ Nm ) = y (N1 ∪ . . . ∪ Nm ) = y1 + . . . + yn , with at least one strict inequality,1 which means that x L y. To see that EL(N, v) = {x}, we replicate the induction argument used by Dutta and Ray (1989) to prove their Theorem 2 (step 2).2 Note first that EL (N1 , v) = x|N1 . Next we see that for all t = 1, . . . , m−1, if EL (N1 ∪ . . . ∪ Nt , v) = x|N1 ∪...∪Nt , then EL (N1 ∪ . . . ∪ Nt+1 , v) = x|N1 ∪...∪Nt+1 . Suppose that EL (N1 ∪ . . . ∪ Nt , v) = x|N1 ∪...∪Nt but EL (N1 ∪ . . . ∪ Nt+1 , v) = x|N1 ∪...∪Nt+1 , for some t. Since x (N1 ∪ . . . ∪ Nt+1 ) = v (N1 ∪ . . . ∪ Nt+1 ) and x ∈ C (N, v), we have x|N1 ∪...∪Nt+1 ∈ C N1 ∪ . . . ∪ Nt+1 , v|N1 ∪...∪Nt+1 ⊆ L (N1 ∪ . . . ∪ Nt+1 , v) , and thus there exists y ∈ L (N1 ∪ . . . ∪ Nt+1 , v) with y y1 ˆ y1 + y2 ˆ ˆ L x|N1 ∪...∪Nt+1 . Then, ≤ x1 ≤ x1 + x2 . . . (8) y1 + . . . + y|N1 ∪...∪Nt+1 | = x1 + . . . + x|N1 ∪...∪Nt+1 | ˆ ˆ with at least one strict inequality. Since y (N1 ∪ . . . ∪ Nt+1 ) = x (N1 ∪ . . . ∪ Nt+1 ), if yj ≥ xj for all j ∈ N1 ∪ . . . ∪ Nt+1 then we would have y = x|N1 ∪...∪Nt+1 , in contradiction with y L x|N1 ∪...∪Nt+1 . As a consequence, the set J := {j ∈ N1 ∪ . . . ∪ Nt+1 | yj < xj } must be non-empty. Take then q ∗ = min {k ∈ {1, . . . , t + 1} |J ∩ Nk = ∅}. We claim that, yi ≤ xi for all i ∈ Nq∗ . 1 2 This strict inequality follows from expression (2). We describe in detail the induction argument for the convenience of the reader. 7 Indeed, if q ∗ = 1, for all i ∈ N1 it follows from (8) that yi ≤ y1 ≤ x1 = xi . If q ∗ > 1, ˆ from yi ≥ xi for all i ∈ N1 and expression (8) we have yi = xi for all i ∈ N1 .Then, again from (8), we obtain y|N1 |+1 ≤ x|N1 |+1 . The repetition of the same argument ˆ leads to yi = xi for all i ∈ N1 ∪ . . . ∪ Nq∗ −1 . Now, taking into account (8) and the definition of π we obtain, for all i ∈ Nq∗ , yi ≤ y|N1 ∪...∪Nq∗ −1 |+1 ≤ x|N1 ∪...∪Nq∗ −1 |+1 = xi . ˆ Note that q ∗ ≤ t, since otherwise y (N1 ∪ . . . ∪ Nt+1 ) < x (N1 ∪ . . . ∪ Nt+1 ). So, denote T = N1 ∪ . . . ∪ Nq∗ . By hypothesis, EL(T, v) = x|T . But then, since yi ≤ xi for all i ∈ T and there exists j ∗ ∈ Nq∗ such that yj ∗ < xj ∗ , we conclude that y ∈ L (N1 ∪ . . . ∪ Nt+1 , v), getting a contradiction. This means that EL(N, v) = {x}. Remark 3. Under some conditions of positivity, a similar result was stated by Sánchez-Soriano et al. (2014). In that paper, Proposition 2 says the following: The vector a = (1n1 a1 , 1n2 a2 . . . , 1nt at ) such that a1 ≥ a2 ≥ . . . ≥ at > 0 and t ni for all i = 1, . . . , t, Lorenz dominates i=1 ni = n, where 1ni = (1, . . . , 1) ∈ R n1 n each other element x ∈ R satisfying i=1 xi ≥ n1 a1 , n1 +n2 xi ≥ 2 ni ai , . . ., i=1 i=1 n−nt t n t−1 i=1 xi ≥ i=1 ni ai . i=1 xi = i=1 ni ai , and In our context, this implies v(N1 ∪ . . . ∪ Ni ) > 0, for all i = 1, . . . , m, being (N1 , . . . , Nm ) a partition of N as described in Definition 1. At this point, it is important to pointed out that the WCES fails to satisfies covariance (see Dutta and Ray, 1989) and so the problem of existence of the WCES and the properties of Lorenz domination cannot be solved just by looking at positive games. Let us show an example to illustrate this point. Let (N, v) be a game with N = {1, 2, 3} and v({1}) = 0.8, v({2}) = −1, v({3}) = −2, v({12}) = −0.1, v({13}) = −0.8, v({23}) = −3.5 and v({123}) = −1.5. Let x = (0.8, −0.9, −1.4) ∈ C(N, v). Then, the ordered partition of N induced by x is π = ({1} , {2} , {3}), with x1 = v({1}) > 0, x1 + x2 = v({1} ∪ {2}) < 0 and x1 + x2 + x3 = v({1} ∪ {2} ∪ {3}) < 0. From Theorem 1, EL(N, v) = {x} and x Lorenz dominates every other core element. However, this last assertion can not be derived from Proposition 2 in Sánchez-Soriano et al. (2014). Theorem 1 generalizes both Theorem 2 and Theorem 3 in Dutta and Ray (1989), and it can be useful to check that a core element is the WCES. Let us introduce the class of games that satisfies the conditions stated in Theorem 1. Definition 2. A game (N, v) is an exact partition game if there exists a core element x such that the ordered partition of N induced by x, π = (N1 , . . . , Nm ), satisfies x(N1 ∪ . . . ∪ Nk ) = v(N1 ∪ . . . ∪ Nk ), for all k = 1, . . . , m. 8 Let ΓEP denote the class of exact partition games. This class is large enough to include convex games and dominant diagonal assignment games,3 but also nonsuperadditive games. Example 1. Let (N, v) be a balanced game with set of players N = {1, 2, 3} and characteristic function: S {1} {2} {3} v(S) S 1 {12} 1 {13} 1 {23} v(S) S 0 {123} 7 0 v(S) 9 This games is not supperadditive since v({12}) < v({1}) + v({2}), but (N, v) ∈ ΓEP . Indeed, take x = (3.5, 2, 3.5) ∈ C(N, v). The ordered partition of N induced by x, π = ({13} , {2}), satisfies x1 + x3 = v({12}) and x(N ) = v(N ). Hence, EL(N, v) = {x} and (N, v) ∈ ΓEP . In Section 4, we will axiomatize the WCES on ΓEP . 4 Axiomatic characterizations The main concern of this section is to characterize the WCES over the domain of exact partition games, ΓEP . As particular cases, we obtain new axiomatic characterizations over the class of convex games. On the domain of convex games, the first characterization was provided by Dutta (1990) by means of constrained egalitarianism and consistency with respect to both the max reduced game (Davis and Maschler, 1965) and the self reduced game (Hart and Mas-Colell,1989). Constrained egalitarianism is a prescriptive property that imposes to select, for two person games, the Lorenz maximal allocation within the core. Consistency is a sort of internal stability requirement that relates the solution of a game to the solution of the game when some players leave the game. A solution σ on Γ ⊆ Γ satisfies • Constrained egalitarianism if for all N ∈ N with |N | = 2, and all (N, v) ∈ Γ , it holds σ(N, v) = CE(N, v). Note that any two person exact partition game is convex. Thus, the WCES satisfies constrained egalitarianism on ΓEP . To define consistency, we need to introduce the notion of reduced game. 3 Using different arguments, Llerena (2012) shows that on the class of dominant diagonal assignment games, the τ -value (Tijs, 1981) satisfies the requirements of Theorem 1. 9 Definition 3. (Davis and Maschler, 1965) Let (N, v) be a game, ∅ = N ⊂ N and x ∈ RK where N \ N ⊆ K ⊆ N . The max reduced game relative to N at x is the N game N , rM,x (v) defined by N rM,x (v)(S)     = 0 if S = ∅, max {v(S ∪ Q) − x(Q)} if ∅ = S ⊂ N ,  Q⊆N \N  v(N ) − x(N \ N ) (9) if S = N . Remark 4. The max reduction operation is transitive (See, for instance, Chang N N N and Hu, 2007). That is, rM,x|N rM,x (v) = rM,x (v), for all N ∈ N , all (N, v) ∈ Γ, all coalitions ∅ = N ⊂ N ⊂ N and all payoff vector x ∈ RK with N \ N ⊆ K ⊆ N. In the max reduced game (relative to N at x), the worth of a coalition S ⊂ N is determined under the assumption that S can choose the best partners in N \ N , provided they are paid according to x. Max consistency says that in this max reduced game, the original agreement should be confirmed. A solution σ on Γ ⊆ Γ satisfies • Max consistency if for all N ∈ N , all (N, v) ∈ Γ , all N ⊂ N, N = ∅, and N N all x ∈ σ(N, v), then N , rM,x (v) ∈ Γ and x|N ∈ σ N , rM,x (v) . • Weak max consistency if for all N ∈ N , all (N, v) ∈ Γ , all N ⊂ N N with 1 ≤ |N | ≤ 2 and all x ∈ σ(N, v), then N , rM,x (v) ∈ Γ and x|N ∈ N σ N , rM,x (v) . • Rich player max consistency if for all N ∈ N , all (N, v) ∈ Γ and all x ∈ σ(N, v), if N1 ⊆ N, N1 = N, is the set of players with highest payoff N \N N \N (w.r.t. x), then N \ N1 , rM,x 1 (v) ∈ Γ and x|N \N1 ∈ σ N \ N1 , rM,x 1 (v) . Weak max consistency applies the condition of max consistency to reduced games with at most two players. Rich player max consistency weakens max consistency just requiring this condition when rich players leave the game. Clearly, max consistency implies both weak and rich player max consistency. Proposition 1. The WCES satisfies max consistency on ΓEP . Proof. For two person games, max consistency clearly holds. Let (N, v) ∈ ΓEP and x = EL(N, v) with |N | > 2. Since the max reduction operation is transitive N \{i} (see Remark 4), it is enough to see that, for all i ∈ N , N \ {i}, rM,x (v) ∈ ΓEP N \{i} and x|N \{i} = EL N \ {i}, rM,x (v) . Let π = (N1 , . . . , Nm ) be the ordered partition of N induced by x. We distinguish two cases: 10 1) If m = 1, then x = v(N ) , . . . , v(N|) |N | |N ∈ C(N, v). Let i ∈ N . By max N \{i} consistency of the core (Peleg, 1986), x|N \{i} ∈ C N \ {i}, rM,x (v) . Hence, N \{i} N \{i} N \ {i}, rM,x (v) ∈ ΓEP and x|N \{i} = EL N \ {i}, rM,x (v) . 2) If m > 1, take k ∈ {1, . . . , m} and i ∈ Nk . The ordered partition of N \ {i} induced by x|N \{i} is either π = (N1 , . . . , Nk−1 , Nk \ {i}, Nk+1 , . . . , Nm ), if |Nk | > 1, or π = (N1 , . . . , Nk−1 , Nk+1 , . . . , Nm ), otherwise. From the max consistency of the core, the definition of max reduced game and the fact that x(N1 ∪ . . . ∪ Nk ) = v(N1 ∪ . . . ∪ Nk ) for all k ∈ {1, . . . , m}, we have • For h ∈ {1, . . . , k − 1}, N \{i} x(N1 ∪ . . . ∪ Nh ) ≥ rM,x (v)(N1 ∪ . . . ∪ Nh ) ≥ v(N1 ∪ . . . ∪ Nh ) = x(N1 ∪ . . . ∪ Nh ), which means that N \{i} x(N1 ∪ . . . ∪ Nh ) = rM,x (v)(N1 ∪ . . . ∪ Nh ). (10) • For h ∈ {k, . . . , m}, x(N1 ∪ . . . ∪ Nk \ {i} ∪ . . . ∪ Nh ) ≥ ≥ = = N \{i} rM,x (v)(N1 ∪ . . . ∪ Nk \ {i} ∪ . . . ∪ Nh ) v(N1 ∪ . . . ∪ Nk ∪ . . . ∪ Nh ) − xi x(N1 ∪ . . . ∪ Nk ∪ . . . ∪ Nh ) − xi x(N1 ∪ . . . ∪ Nk \ {i} ∪ . . . ∪ Nh ), which means that N \{i} x(N1 ∪ . . . ∪ Nk \ {i} ∪ . . . ∪ Nh ) = rM,x (v)(N1 ∪ . . . ∪ Nk \ {i} ∪ . . . ∪ Nh ). (11) From (10) and (11) it follows that x|N \{i} satisfies the conditions stated in N \{i} Theorem 1 (w.r.t. π ). Hence, we conclude that N \ {i}, rM,x (v) ∈ ΓEP N \{i} and x|N \{i} = EL N \ {i}, rM,x (v) . To prove that max consistency together with constrained egalitarianism characterize the WCES over the class of convex games, Dutta (1990) invokes converse max consistency, which is the dual property of max consistency. This property is crucial in his proof of uniqueness. A solution σ on Γ ⊆ Γ satisfies 11 • Converse max consistency if for all N ∈ N with |N | ≥ 3, all (N, v) ∈ Γ and all x ∈ RN with x(N ) = v(N ), if for all N ⊂ N with |N | = 2, N N N , rM,x (v) ∈ Γ and x|N ∈ σ N , rM,x (v) , then x ∈ σ(N, v). Converse max consistency says that if the projection of an efficient allocation x is chosen for every two player max reduced game, then x should be chosen for the original game. Unfortunatly, Example 2 bellow reveals that the WCES is in conflict with converse max consistency on ΓEP . Example 2. (Arín and Iñarra, 2001) Let (N, v) be a balanced game with set of players N = {1, 2, 3, 4} and characteristic function: S {1} {2} {3} {4} v(S) 0 0 0 0 S v(S) S {12} 0 {123} {13} 2 {124} {14} 2 {134} {23} 2 {234} {24} 2 {34} 0 v(S) S v(S) 0 {1234} 4 0 0 0 Take x = (1, 1, 1, 1) ∈ C(N, v). The ordered partition of N induced by x is π = ({N }) and x(N ) = v(N ). Hence, EL(N, v) = {x} and (N, v) ∈ ΓEP . Now choose N y = (2, 2, 0, 0) ∈ C(N, v). Below, we describe the max reduced games N , rM,y relative to N ⊂ N at y with |N | = 2, {12} S {12} rM,y (v) 4 {14} S {14} rM,y (v) 2 {24} S {24} rM,y (v) 2 S {1} {2} rM,y (v) 2 2 S {1} {4} rM,y (v) 2 0 S {2} {4} rM,y (v) 2 0 {13} rM,y (v) 2 {23} rM,y (v) 2 {34} rM,y (v) 0 {12} S {1} {3} rM,y (v) S 2 {13} 0 {14} S {2} {3} rM,y (v) S 2 {23} 0 {24} S {3} {4} rM,y (v) S 0 {34} 0 {13} {23} {34} The corresponding constrained egalitarian solution are: {12} CE {13}, rM,y (v) = (2, 0) = y|{13} , {13} {14} CE {23}, rM,y (v) = (2, 0) = y|{23} , {24} CE {34}, rM,y (v) = (0, 0) = y|{34} . CE {12}, rM,y (v) = (2, 2) = y|{12} {23} CE {14}, rM,y (v) = (2, 0) = y|{14} {34} CE {24}, rM,y (v) = (2, 0) = y|{24} 12 However, y = EL(N, v). To be precise, Dutta (1990) only uses bilateral max consistency, that is, max consistency for only two person games, together with constrained egalitarianism, to characterize the WCES on ΓCon . Let us see that on ΓEP , these two properties do not characterize the WCES. To do this, we introduce the egalitarian core (Arin and Iñarra, 2001). Definition 4. The egalitarian core of a balanced game (N, v), denoted by Eg C, is the set Eg C(N, v) = {x ∈ C(N, v) | xi > xj ⇒ Sij (x) = 0}, where Sij (x) = max{v(S) − x(S) | i ∈ S, j ∈ S, S ⊂ N }. Arín and Iñarra (2001) show that the egalitarian core satisfies max consistency and constrained egalitarianism on ΓBal . Note that a two person balanced games is an exact partition game since the constrained egalitarian solution is a core element satisfying the conditions stated in Theorem 1. Thus, the egalitarian core satisfies bilateral max consistency and constrained egalitarianism on ΓEP . In Example 2, EL(N, v) = {(1, 1, 1, 1)} and (2, 2, 0, 0) ∈ Eg C(N, v), which means that EL(N, v) = Eg C(N, v). The same example also illustrates that the egalitarian core is not max consistent on ΓEP . Indeed, consider the max reduced N \{4} game N \ {4}, rM,y (v) with y = (2, 2, 0, 0). As the reader can easily check, N \{4} N \{4} Eg C N \ {4}, rM,y (v) = {(2, 2, 0} and N \ {4}, rM,y (v) ∈ ΓEP . The second characterization of the WCES provided by Dutta (1990) uses self consistency (Hart and Mas-Collel, 1989). This property is defined for single-valued solutions. A single-valued solution σ on Γ ⊆ Γ satisfies • Self consistency if for all N ∈ N , all (N, v) ∈ Γ and all N ⊂ N, N = ∅, N N then N , rS,σ (v) ∈ Γ and, for all i ∈ N , σi (N, v) = σi N , rS,σ (v) , N where N , rS,σ (v) is the self reduced game of (N, v) relative to N and σ definded as follows: N rS,σ (v)(R) =    0  v(R ∪ (N \ N )) −  σi R ∪ (N \ N ), v|R∪(N \N ) if R = ∅, if ∅ = R ⊆ N . i∈N \N (12) In the self reduced game (relative to N at σ), the worth of a coalition R ⊆ N is the worth of R ∪ (N \ N ) in the original game minus the sum of the payoffs that the solution assigns the members of N \ N for the subgame faced by the group R ∪ (N \ N ). Self consistency states that in this self reduced game, the original agreement should be accepted. The next example shows that the WCES fails to satisfies self consistency on ΓEP . 13 Example 3. Let (N, v) be a balanced game with set of players N = {1, 2, 3} and characteristic function: S {1} {2} {3} v(S) S 2 {12} 1 {13} 0 {23} v(S) S 4 {123} 2 1.5 v(S) 4 Take x = (2, 2, 0) ∈ C(N, v). The ordered partition of N induced by x, π = ({12} , {3}), satisfies x1 + x2 = v({12}) and x(N ) = v(N ). Hence, from Theorem 1 we have that EL(N, v) = {x} and (N, v) ∈ ΓEP . Let N = {13}. Then, N rS,EL (v)({1}) = v({12}) − EL2 {12}, v|{12} = 4 − 2 = 2, N rS,EL (v)({3}) = v({23}) − EL2 {23}, v|{23} = 1.5 − 1 = 0.5 and N rS,EL (v)({13}) = v(N ) − EL2 (N, v) = 4 − 2 = 2. (13) N N Note that N , rS,EL (v) has no imputations. Thus, N , rS,EL (v) ∈ ΓEP and the WCES is not defined. In order to characterize the WCES within the domain of exact partition games we will make use, together with consistency, the following properties. A solution σ on Γ ⊆ Γ satisfies • Nonemptiness if for all N ∈ N and all (N, v) ∈ Γ , it holds σ(N, v) = ∅. • Efficiency if for all N ∈ N , all (N, v) ∈ Γ and all x ∈ σ(N, v), then x(N ) = v(N ). • Individual rationality if for all N ∈ N , all (N, v) ∈ Γ , all x ∈ σ(N, v) and all i ∈ N , then xi ≥ v({i}). • Core selection if for all N ∈ N , all (N, v) ∈ Γ , all x ∈ σ(N, v) and all S ⊆ N , then x(S) ≥ v(S). • Rich player feasibility if for all N ∈ N , all (N, v) ∈ Γ and all x ∈ σ(N, v), it holds x(N1 ) ≤ v(N1 ), where N1 denotes the set of players with highest payoff (w.r.t. x). • Internal Lorenz stability if for all N ∈ N with |N | ≥ 2, all (N, v) ∈ Γ and all x, y ∈ σ(N, v), neither x L y nor y L x. • External Lorenz stability (over the core) if for all N ∈ N with |N | ≥ 2 and all (N, v) ∈ Γ , if x ∈ C(N, v) \ σ(N, v), then there is y ∈ σ(N, v) such that y L x. 14 Efficiency says that all the gains from cooperation should be shared among the players. Individual rationality means that the proposed solution can not be improved upon by a single player, while core selection extends this impossibility to any coalition. Note that core selection, together with the feasibility assumption of a solution, imply efficiency. Rich player feasibility states that the total amount received by players with the highest payoff can not exceed what they can get for themselves. Internal Lorenz stability is a natural requirement in an egalitarian framework. External Lorenz stability (over the core) gives priority to the social goal of equality in front of particular interests, in the sense that if a core element is not an outcome of the solution is because there is an allocation in the solution which is more egalitarian (w.r.t. the Lorenz criterion). Next, we state our first characterization result. Theorem 2. The WCES is the unique solution on ΓEP that satisfies weak max consistency, individual rationality, internal Lorenz stability and external Lorenz stability (over the core). Proof. Proposition 1 implies weak max consistency and individual rationality comes from the fact that the WCES selects a core element. Internal Lorenz stability is because the WCES is single-valued, and external Lorenz stability (over the core) follows from Theorem 1. In order to show uniqueness, suppose there is a solution σ = EL satisfying the above four properties. Let (N, v) ∈ ΓEP . Note that external Lorenz stability (over the core) implies nonemptiness. If |N | = 1, by nonemptiness and individual rationality (and feasibility) σ(N, v) = EL(N, v). Suppose |N | ≥ 2. We first show that σ(N, v) ⊆ C(N, v). Let x ∈ σ(N, v) and i ∈ N . Then, weak max consistency {i} and efficiency for one person game imply xi = rM,x (v)({i}) = v(N ) − j∈N \{i} xj , which proves efficiency. To check coalitional rationality, let ∅ = S ⊂ N and i ∈ {ik} N \ S. Chose k ∈ S and consider the max reduced game {ik}, rM,x (v) . By weak {ik} max consistency, x|{ik} ∈ σ {ik}, rM,x (v) and, by individual rationality, xk ≥ {ik} rM,x (v)({k}) ≥ v(S) − x(S \ {k}), which implies x(S) ≥ v(S). Hence, x ∈ C(N, v). Let us denote x∗ = EL(N, v). If x∗ ∈ σ(N, v), by external Lorenz domination (over the core) there is y ∈ σ(N, v) such that y L x∗ , a contradiction. Hence, x∗ ∈ σ(N, v). Finally, by internal Lorenz stability we conclude that σ(N, v) = EL(N, v). To see that the properties in Theorem 2 are independent we introduce the following solutions: • Let σ1 defined as follows: σ1 (N, v) = ∅, for each (N, v) ∈ ΓEP . Then, σ1 satisfies weak max consistency, individual rationality, internal Lorenz stability, but no external Lorenz stability (over the core). • Let σ2 defined as follows: σ2 (N, v) = C(N, v), for each (N, v) ∈ ΓEP . Then, 15 σ2 satisfies weak max consistency, individual rationality, external Lorenz stability (over the core), but not internal Lorenz stability. • Let σ3 defined as follows: σ3 (N, v) = EI(N, v), for each (N, v) ∈ ΓEP . That is, σ3 chooses the Lorenz maximal allocations in the imputation set. Llerena and Mauri (2015) show that this solution is single-valued and Lorenz dominates all core elements. Then, σ3 satisfies individual rationality, internal Lorenz stability, external Lorenz stability (over the core), but not weak max consistency. • Let σ4 defined as follows: σ4 (N, v) = EL(N, v) if |N | ≥ 2, and σ4 (N, v) = X ∗ ({i}, v) if N = {i}, for each (N, v) ∈ ΓEP . Then, σ4 satisfies weak max consistency, internal Lorenz stability, external Lorenz stability (over the core), but not individual rationality. It is well-known that the max reduced game of a convex game relative to a core element is also convex (see, for instance, Hokari, 2002). Moreover, on this domain the WCES selects the unique Lorenz maximal allocation within the core (Dutta and Ray, 1989). Thus, Theorem 2 holds on the domain of convex games. Theorem 3. The WCES is the unique solution on ΓCon that satisfies weak max consistency, individual rationality, internal Lorenz stability and external Lorenz stability (over the core). Defined on the domain of convex games, σ1 , σ2 , σ3 and σ4 show the independence of the properties in Theorem 3. Although the WCES satisfies nice properties on the domain of convex games, and some of them are inherited on the domain of exact partition games, its existence is not linked to the nonemptiness of the core. On the domain of balanced games, an alternative route, already suggested by Dutta and Ray (1989) and latter adopted by Arin and Iñarra (2001) and Hougaard et al. (2001), is to focus on the Lorenz maximal allocations within the core. Definition 5. The Lorenz maximal core of a balanced game (N, v), denoted by EC(N, v), is the set EC(N, v) = {x ∈ C(N, v) | y ∈ C(N, v) such that y L x} . By definition, the Lorenz maximal core satisfies individual rationality and internal Lorenz stability. External Lorenz stability (over the core) follows by compactness of the core. Arin and Iñarra (2001) and also Hougaard et al. (2001), show that the Lorenz maximal core satisfies max consistency. Since weak max consistency and individual rationality imply core selection, uniqueness follows directly from internal Lorenz stability and external Lorenz stability (over the core). Thus, properties in Theorem 2 also characterize the Lorenz maximal core on the domain of balanced games. 16 Theorem 4. The Lorenz maximal core is the unique solution on ΓBal that satisfies weak max consistency, individual rationality, internal Lorenz stability and external Lorenz stability (over the core). Solution σ1 , σ2 and σ3 defined on ΓBal , together with solution σ5 defined bellow, show the independence of the properties in Theorem 4. • Let σ5 defined as follows: σ5 (N, v) = EC(N, v) if |N | ≥ 2, and σ5 (N, v) = X ∗ ({i}, v) if N = {i}, for each (N, v) ∈ ΓBal . Then, σ4 satisfies weak max consistency, internal Lorenz stability, external Lorenz stability (over the core), but not individual rationality. Our second characterization is by means of nonemptiness, rich player max consistency, core selection and rich payer feasibility. Theorem 5. The WCES is the unique solution on ΓEP that satisfies nonemptiness, rich player max consistency, core selection, and rich player feasibility. Proof. Proposition 1 implies rich player max consistency, nonemptiness and core selection follow from the fact that the WCES selects a core element, rich player feasibility comes from the structure of the WCES on ΓEP . In order to show uniqueness, suppose there is a solution σ = EL satisfying the above four properties. Let (N, v) ∈ ΓEP , EL(N, v) = {x} and π = (N1 , N2 , . . . , Nm ) be the ordered partition of N induced by x. First, we will see that N1 is the unique maximal equity coalition of (N, v). Let R ⊆ N be an equity coalition. Recall that xk = v(N11|) , for all k ∈ N1 . Since x ∈ C(N, v), there exists i ∈ R |N v(R) . Thus, for each k ∈ N1 , it holds xk = v(N11|) ≥ xi ≥ v(R) ≥ v(N11|) , |R| |N |R| |N v(R) v(N1 ) that |R| = |N1 | . Hence, N1 is an equity coalition. Suppose that such that xi ≥ which means R \ N1 = ∅. Then, x(R) = xi = |N1 ∩ R| xi + i∈N1 ∩R < |N1 ∩ R| i∈R\N1 v(N1 ) + xi |N1 | i∈R\N1 v(N1 ) v(N1 ) v(N1 ) + |R \ N1 | = |R| = v(R), |N1 | |N1 | |N1 | contradicting x ∈ C(N, v). Hence, R ⊆ N1 . By nonemptiness, σ(N, v) = ∅. Let y ∈ σ(N, v) and π = (R1 , R2 , . . . , Rk ) be the ordered partition of N induced by y. By core selection and rich player feasibility, yi = v(R11|) for all i ∈ R1 . If R1 = N , by core selection y = x and |R thus σ(N, v) = EL(N, v). Otherwise, since x L y, x1 ≤ y1 which means that ˆ ˆ v(R1 ) v(N1 ) v(N1 ) yi ≥ |N1 | for all i ∈ R1 . Hence, |R1 | ≥ |N1 | . This, together with the fact that 17 N1 is the unique maximal equity coalition of (N, v), leads to R1 ⊆ N1 . Suppose that |R1 | < |N1 |. Then, x1 ˆ x1 + x2 ˆ ˆ = y1 ˆ = y1 + y2 ˆ ˆ . . . x1 + . . . + x|R1 | ˆ ˆ = y1 + . . . + y|R1 | ˆ ˆ x1 + . . . + x|R1 | + x|R1 |+1 > y1 + . . . + y|R1 | + y|R1 |+1 ˆ ˆ ˆ ˆ ˆ ˆ in contradiction with x L y. Thus, R1 = N1 and xi = yi for all i ∈ N1 , N \N N \R which imply N \ N1 , rM,x 1 (v) = N \ R1 , rM,y 1 (v) . By rich player max consisN \N N \N tency, y|N \N1 ∈ σ N \ N1 , rM,x 1 (v) and x|N \N1 = EL N \ N1 , rM,x 1 (v) , with N \N N \ N1 , rM,x 1 (v) ∈ ΓEP . Applying the same arguments as before, it can be checked that N2 = R2 and xi = yi for all i ∈ N2 . Following this reasoning step by step we reach x = y, which means that σ = EL. Solution σ1 defined on ΓEP , together with the following σ6 , σ7 and σ8 show the independence of the properties in Theorem 5. • Let σ6 defined as follows: σ6 (N, v) = {x ∈ C(N, v) | x(N1 ) = v(N1 )}, for each (N, v) ∈ ΓEP , where N1 denotes the set of players with highest payoff (w.r.t. x). Then, σ6 satisfies nonemptiness, core selection and rich player feasibility, but not rich player max consistency. v(N ) , . . . v(N|) , for each (N, v) ∈ • Let σ7 defined as follows: σ7 (N, v) = |N | |N ΓEP . Then, σ7 satisfies nonemptiness, rich player max consistency and rich player feasibility, but not core selection. • Let σ8 defined as follows: σ8 (N, v) = EL(N, v) if |N | ≥ 3, and σ8 (N, v) = C(N, v) if |N | ≤ 2, for each (N, v) ∈ ΓEP . Then, σ8 satisfies nonemptiness, rich player max consistency and core selection, but not rich player feasibility. Theorem 5 also holds on the domain of convex games. Theorem 6. The WCES is the unique solution on ΓCon that satisfies nonemptiness, rich player max consistency, core selection and rich player feasibility. Definded on the domain of convex games, σ1 , σ6 , σ7 and σ8 show the independence of the properties in Theorem 6. Finally, let us pointed out that on the domain of balanced games, the properties stated in Theorem 5 do not characterize the Lorenz maximal core since it fails to satisfy rich player feasibility. 18 5 Final remarks We have introduced a subclass of balanced games, called exact partition games ΓEP . This class is large enough to include convex games and dominant diagonal assignment games, but also nonsuperadditive games. On ΓEP , we have shown that the WCES behaves as in convex games, that is, it exists, belongs to the core and Lorenz dominates every other core element. Moreover, we have provided two axiomatic characterizations by means of consistency, rationality, and two properties of fairness based on the Lorenz criterion. Interestingly, both characterizations hold over the domain of convex games. Additionally, one of them could be extended to balanced games characterizing the Lorenz maximal core on this domain. Finally, for future research it could be interesting to study whether the characterizations of the WCES given by Klijn et al. (2000), Hougaard et al. (2001) and Arin et al. (2003) over the domain of convex games can be extended to ΓEP . Acknowledgments We are very grateful to J.M. Izquierdo for his valuable suggestions. The first author acknowledges the support from research grants ECO2014-52340 (Ministerio de Economía y Competitividad) and 2014SGR631 (Generalitat de Catalunya). References [1] Arín, J. and E. Iñarra (2001) Egalitarian solutions in the core. International Journal of Game Theory, 30: 187-193. [2] Arín, J., J. Kuipers and D. Vermeulen (2003) Some characterizations of the egalitarian solutions on classes of TU-games. Mathematical Social Sciences, 46: 327-345. [3] Davis, M. and M. 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