Backward Induction Foundations of the Shapley Value

Epistemic Foundations for Backward Induction: An Overview

In this survey we analyze and compare various sufficient epistemic conditions for backward induction that have been proposed in the literature. To this purpose we present a simple epistemic base model for games with perfect information, and express the conditions of the different models in terms of our base model. This will enable us to explictly analyze the differences and similarities between...

Alternative Axiomatic Characterizations of the Grey Shapley Value

The Shapley value, one of the most common solution concepts of cooperative game theory is defined and axiomatically characterized in different game-theoretic models. Certainly, the Shapley value can be used in interesting sharing cost/reward problems in the Operations Research area such as connection, routing, scheduling, production and inventory situations. In this paper, we focus on the Shapl...

The Shapley group value

Following the original interpretation of the Shapley value (Shapley, 1953a) as a priori evaluation of the prospects of a player in a multi-person interaction situation, we propose a group value, which we call the Shapley group value, as a priori evaluation of the prospects of a group of players in a coalitional game when acting as a unit. We study its properties and we give an axiomatic charact...

64 The Shapley Value

The Shapley Value