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Shapley Value


The Shapley value is a rule for distributing the total value produced by a finite set N of n players. Let v(S) denote the value produced by each subset S subset= N, with v(emptyset)=0. The Shapley value assigned to player i is

 phi_i(v)=sum_(S subset= N\{i})(|S|!(n-|S|-1)!)/(n!)[v(S union {i})-v(S)].

The difference v(S union {i})-v(S) is the marginal contribution of player i to S. The factorial coefficient is the probability that exactly the players in S precede i in a uniformly random ordering of all players. Thus, phi_i(v) is the expected marginal contribution of player i over all possible player orderings.


See also

Game Theory, Permutation, Subset

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References

Shapley, L. S. "A Value for n-Person Games." In Contributions to the Theory of Games, Vol. II. (Eds. H. W. Kuhn and A. W. Tucker). Princeton, NJ: Princeton University Press, pp. 307-317, 1953.

Cite this as:

Weisstein, Eric W. "Shapley Value." From MathWorld--A Wolfram Resource. https://mathworld.wolfram.com/ShapleyValue.html

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