The Complete Idiot's Guide to Game Theory by Rosenthal Ph.D. Edward C

Author:Rosenthal Ph.D., Edward C.
Language: eng
Format: mobi, epub, pdf
Publisher: Alpha
Published: 2011-02-28T16:00:00+00:00

Since we worked out Shapley value examples in Chapter 12, we will not do more of them here. In some cases, like the two preceding examples, the Shapley-Shubik Power Index will match the Banzhaf results exactly, though in many cases it will not. Generally, the results from the two methods will not diverge much.

The difference is found in the way that the Shapley value generates the orderings of players. While the Banzhaf index looks at a coalition once to count up the swing votes, the Shapley value also considers the different ways that the coalition could have formed, thus assigning a different weight to a particular swing vote. That aside, for most experts there isn’t much advantage using one method over the other.

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