Abstract

We introduce a solution concept for cooperative games with transferable utility and a coalition structure that is proportional for two-player games. Our value is obtained from generalizing a proportional value for cooperative games with transferable utility in a way that parallels the extension of the Shapley value to the Owen value. We provide two characterizations of our solution concept, one that employs a property that can be seen as the proportional analog to Myerson’s balanced contribution property; and a second one that relies on a consistency property.