Abstract

In the framework of transferable utility games, we modify the 2-person Davis–Maschler reduced game to ensure non-emptiness of the imputation set of the adapted 2-person reduced game. Based on the modification, we propose two new axioms: reduced game monotonicity and reduced dominance. Using RGM, RD, NE, Covariance under strategic equivalence, Equal treatment property and Pareto optimality, we are able to characterize the kernel.