CFDP 2123

Intuitive Solutions in Game Representations: The Shapley Value Revisited


Publication Date: March 2018

Pages: 9

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.

Keywords: TU game, Characteristic function, Shapley value, Assignment, Representation

JEL Classification Codes: C71, C72, D61, D63, D70, D79

JEL Classification Codes: C71C72D61D63D70D79