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The Coleman-Shapley-index: Being decisive within the coalition of the interested

Author

Listed:
  • André Casajus

    (HHL Leipzig Graduate School of Management)

  • Frank Huettner

    (ESMT Berlin)

Abstract

The Coleman Power of the Collectivity to Act (CPCA) is a popular statistic that re flects the ability of a committee to pass a proposal. Applying the Shapley value to this measure, we derive a new power index that indicates each voter's contribution to the CPCA. This index is characterized by four axioms: anonymity, the null voter property, transfer property, and a property that stipulates that sum of the voters' power equals the CPCA. Similar to the Shapley-Shubik index (SSI) and the Penrose-Banzhaf index (PBI), our new index emerges as the expectation of being a pivotal voter. Here, the coalitional formation model underlying the CPCA and the PBI is combined with the ordering approach underlying the SSI. In contrast to the SSI, the voters are not ordered according to their agreement with a potential bill but according to their vested interest in it. Among the most interested voters, the power is then measured in a similar way as with the PBI. Although we advocate the CSI against the PBI to capture a voter's in fluence on whether a proposal passes, the CSI gives new meaning to the PBI. The CSI is the decomposer of the PBI, splitting it into a voter's power as such and a her impact on the power of the other voters by threatening to block any proposal. We apply the index to the EU Council and the UN Security Council.

Suggested Citation

  • André Casajus & Frank Huettner, 2018. "The Coleman-Shapley-index: Being decisive within the coalition of the interested," ESMT Research Working Papers ESMT-18-03, ESMT European School of Management and Technology.
  • Handle: RePEc:esm:wpaper:esmt-18-03
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    File URL: http://static.esmt.org/publications/workingpapers/ESMT-18-03.pdf
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    Cited by:

    1. Ori Haimanko, 2020. "Generalized Coleman-Shapley indices and total-power monotonicity," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 299-320, March.
    2. Thomas Fujiwara & Carlos Sanz, 2020. "Rank Effects in Bargaining: Evidence from Government Formation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(3), pages 1261-1295.

    More about this item

    Keywords

    Decomposition; Shapley value; Shapley-Shubik index; power index; Coleman Power of the Collectivity to Act; Penrose-Banzhaf index; EU Council; UN Security Council;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D60 - Microeconomics - - Welfare Economics - - - General

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