A Dividend-Based Approach to the Solidarity Value: Structural Decomposition and Axiomatic Characterizations

Abstract This paper introduces a novel recursive approach to define Harsanyi-type dividends for the class of solidarity values in cooperative games with transferable utilities. This approach facilitates the reduction of computational complexities, simplifies the characterizations of the solidarity value, and strengthens the value’s theoretical foundation while enhancing conceptual clarity and computational tractability via dividend-based decomposition. We also introduce a set of axioms that offer alternative characterizations of the solidarity value.