logo

Shapley Value

Knowledge Center

Game Theory

Forum

Rating

Albert Akos
3
Albert Akos

Shapley Value

Hi,
I have the following exercise and I am not sure about the calculation, if you could help me out, that would be awesome.
Consider the following characteristic function game: N = {1, 2, 3} and v({1}) = 0, v({2}) = 0, v({3}) = 0,
V({1,2}) = 40, v({1,3}) = 0, v({2,3}) = 50, v({1,2,3}) = 50. Find the core and the Shapley value.
Thanks in advance.

X

Sign up for free

Welcome to the Game Theory forum of 12manage.

Here we exchange knowledge and experiences in the field of Game Theory.

❗Sign up now to gain access to 12manage. Completely free.

Reg
 
Comments

Rating

  Jaap de Jonge
1
Jaap de Jonge
Editor, Netherlands
 

What is Shapley Value?

The Shapley value is a solution model in cooperative game theory named after Lloyd Shapley, who first introduced and axiomatized it in 19531. It assigns a unique distribution among the participants of a total surplus generated by the coalition of all participants in any cooperative game. The Shapley value is characterized by a collection of desirable properties.

A cooperative setup is typically as follows: a coalition of participants cooperates, and obtains a certain overall gain (total benefits) from that cooperation. Because some participants may contribute more to the coalition than others, or some participants may possess different bargaining power, a particular final distribution of generated surplus among the players will arise in any particular game.
In other words it predicts, considering the importance of each participant to the overall cooperation, what payoff each participant can reasonably expect.

The formula is quite complex and can be found in Wikipedia.

Note that Shapley distributes the total gains to the players, assuming that they all collaborate, publicly share their contributions, and that a "fair" distribution has to be reached. As always, reality could be quite different from these assumptions...
1L.S. Shapley (1953). A value for n-person games. In H. W. Kuhn and A. W. Tucker, editors, Contributions to the Theory of Games, volume II. Annals of Mathematics Studies 28. Princeton University Press, pp.307–317.

 

Leave a comment
Help improve this subject


More on Game Theory
Summary Discussion Topics
topic Game Theory in Business
topic Game Theory vs. SWOT Analysis in the Strategy Process
topic Game Theory Cases in Strategy?
topic Game Theory and Oligopolistic Competition
🔥 Gamification in Business and Management
topic Types of Game Theory
topic Is Business Strategy a Non-Zero-Sum Game?
topic What are the Uses of Game Theory? List of Usages
topic Can Game Theory deal with Bounded Rationality?
topic Using Game Theory for Making Investments
topic What is Dominance Theory?
👀Shapley Value
Special Interest Group


More on Game Theory
Summary Discussion Topics
topic Game Theory in Business
topic Game Theory vs. SWOT Analysis in the Strategy Process
topic Game Theory Cases in Strategy?
topic Game Theory and Oligopolistic Competition
🔥 Gamification in Business and Management
topic Types of Game Theory
topic Is Business Strategy a Non-Zero-Sum Game?
topic What are the Uses of Game Theory? List of Usages
topic Can Game Theory deal with Bounded Rationality?
topic Using Game Theory for Making Investments
topic What is Dominance Theory?
👀Shapley Value
Special Interest Group
Knowledge Center

Game Theory



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2024 12manage - The Executive Fast Track. V17.2 - Last updated: 1-6-2024. All names ™ of their owners.