The pairwise egalitarian solution

The main aim of this paper is to introduce an ad hoc solution concept for transportation games. This solution is related to the structure of the underlying transportation problem in the game, in particular to the optimal solutions for it. This is significantly called the pairwise egalitarian solution. We compare the new solution with the Core and the Shapley value of the game. Finally, we study the properties satisfied by the pairwise egalitarian solution and provide two axiomatic characterizations of it. (C) 2002 Elsevier Science B.V. All rights reserved.