O'Reilly logo

The Complete Idiot's Guide to Game Theory by Edward Rosenthal, Ph.D., Edward C. Rosenthal

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

The Shapley Value

To solve a cooperative game is to stipulate how much each player should pay in a cost situation, or receive in a profit situation. Any solution ought to satisfy two sensible conditions:
A solution must be individually rational,as we have already seen. If a solution to a cooperative game is worse for a certain player than what she can obtain by herself, then why would she cooperate?
A solution must be feasible. This means that the sum of the costs or profits given by the solution must equal the total bill or profit derived. This sense of feasibility is called “efficiency” by economists. An efficient solution is one that neither allocates more than what is available nor leaves any money on the table.
In 1953 Shapley devised ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required