POTENTIAL, VALUE AND PROBABILITY

Federico Valenciano () and Annick Laruelle ()

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This paper focuses on the probabilistic point of view and proposes a extremely simple probabilistic model that provides a single and simple story to account for several extensions of the Shapley value, as weighted Shapley values, semivalues, and weak (weighted or not) semivalues, and the Shapley value itself. Moreover, some of the most interesting conditions or notions that have been introduced in the search of alternatives to Shapley's seminal characterization, as 'balanced contributions' and the 'potential', are reinterpreted from this same point of view. In this new light these notions and some results lose their 'mystery' and acquire a clear and simple meaning. These illuminating reinterpretations strongly vindicate the complementariness of the probabilistic and the axiomatic approaches, and shed serious doubts about the achievements of the axiomatic approach since Nash's and Shapley's seminal papers in connection with the genuine notion of value.

Keywords: Coalition games; value; potential (search for similar items in EconPapers)
JEL-codes: C71 D84 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2003-01
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2003-01

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