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Chapter 55: The Shapley Value and Legislative Power
The Shapley Value and Legislative Power
While the solution of cooperative games represented by the core embodies the principle of ‘no-objection’, the Shapley value, the second of the two most commonly used solution concepts, exemplifies the spirit of ‘fair contribution’. The application of the Shapley value [Page 239]in the calculation of the ‘power index’ of each party in a legislature is detailed here.
Many of you would have felt that the core of the two sellers, one buyer game of the previous chapter did not do justice to either of the sellers: They ended up with nothing, although it was their product that brought value to the buyer. Well, the Shapley value, that exemplifies the spirit of ‘fair contribution’, heeds ...