The average-of-awards rule for claims problems

Abstract

Given a claims problem, the average-of-awards rule (AA) selects the expected value of the uniform distribution over the set of awards vectors. The AA rule is the center of gravity of the core of the coalitional game associated with a claims problem, so it corresponds to the core-center. We show that this rule satisfies a good number of properties so as to be included in the inventory of division rules. We also provide several representations of the AA rule and a procedure to compute it in terms of the parameters that define the problem.