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Intuitive Solutions in Game Representations: The Shapley Value Revisited

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Listed:
  • Pradeep Dubey

    (Stony Brook Center for Game Theory)

Abstract

We show that any transferable utility game can be represented by an assignment of facilities to players, in which it is intuitively obvious how to allocate the total cost of the facilities. The intuitive solution in the representation turns out to be the Shapley value of the game, and thus serves as an alternative justification of the value.

Suggested Citation

  • Pradeep Dubey, 2018. "Intuitive Solutions in Game Representations: The Shapley Value Revisited," Cowles Foundation Discussion Papers 2123, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:2123
    as

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    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d21/d2123.pdf
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    References listed on IDEAS

    as
    1. Pradeep Dubey, 1982. "The Shapley Value as Aircraft Landing Fees--Revisited," Management Science, INFORMS, vol. 28(8), pages 869-874, August.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Pradeep Dubey, 2024. "Equitable Solutions in Game Representations: An Extension of the Shapley Value," Department of Economics Working Papers 24-01, Stony Brook University, Department of Economics.
    2. Pradeep Dubey, 2024. "Game Representations and Extensions of the Shapley Value," Papers 2401.09845, arXiv.org.
    3. Pradeep Dubey, 2018. "Equitable Solutions in Game Representations and the Shapley Value," Department of Economics Working Papers 18-11, Stony Brook University, Department of Economics.

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    More about this item

    Keywords

    TU game; Characteristic function; Shapley value; Assignment; Representation;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other

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