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The Shapley Value of Coalitions to Other Coalitions

Economics

The Shapley Value of Coalitions to Other Coalitions

K. Hausken

Explore how the Shapley value for n-person games can be analyzed through a comprehensive value matrix, suggesting intricate dynamics of coalition interactions. This fascinating research by Kjell Hausken reveals how the value of one coalition is intricately linked to the interplay among its members, offering a unique perspective on coalition benefits and detriments.... show more
Abstract
The Shapley value for an n-person game is decomposed into a 2^n x 2^n value matrix giving the value of every coalition to every other coalition. The cell φ(ν, N) in the symmetric matrix is positive, zero, or negative, dependent on whether row coalition ν is beneficial, neutral, or unbeneficial to column coalition J. This enables viewing the values of coalitions from multiple perspectives. The n x 1 Shapley vector, replicated in the bottom row and right column of the 2^n x 2^n matrix, follows from summing the elements in all columns or all rows in the n x n player value matrix replicated in the upper left part of the 2^n x 2^n matrix. A proposition is developed, illustrated with an example, revealing desirable matrix properties, and applicable for weighted Shapley values. For example, the Shapley value of a coalition to another coalition equals the sum of the Shapley values of each player in the first coalition to each player in the second coalition.
Publisher
Humanities and Social Sciences Communications
Published On
Sep 24, 2020
Authors
Kjell Hausken
Tags
Shapley value
n-person game
value matrix
coalition interaction
weighted Shapley values
matrix properties
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