 Valuing inputs under supply uncertainty: The Bayesian Shapley valueRoland Pongou and Jean-Baptiste Tondji Games and Economic Behavior, 2018, vol. 108, issue C, 206-224 Abstract: We consider the problem of valuing inputs in a production environment in which input supply is uncertain. Inputs can be workers in a firm, risk factors for a disease, securities in a financial market, or nodes in a networked economy. Each input takes its values from a finite set and uncertainty is modeled as a probability distribution over this set. First, we provide an axiomatic solution to this problem, uniquely characterizing a valuation scheme called the a priori Shapley value. Second, we solve the problem of valuing inputs a posteriori – that is, after observing output –, obtaining the Bayesian Shapley value. Third, we address the question of rationalizing uncertainty in labor supply in a non-cooperative production game where payoffs are given by the Shapley wage function. We also provide an intuitive condition for the existence of a pure strategy Nash equilibrium. Illustrations of the theory include an application to fidelity networks. Keywords: Input valuation; Uncertainty; A priori Shapley value; Bayesian Shapley value; Rationalizability; Fidelity networks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:108:y:2018:i:c:p:206-224 DOI: 10.1016/j.geb.2017.08.005 Access Statistics for this article Games and Economic Behavior is currently edited by E. Kalai More articles in Games and Economic Behavior from Elsevier |
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