key term - Shapley Value

Definition

The Shapley Value is a concept from cooperative game theory that provides a fair distribution of payoffs to players based on their individual contributions to the overall success of a coalition. It takes into account the value each player brings to the group and ensures that they receive compensation that reflects their marginal contributions, promoting equitable outcomes in various scenarios.

5 Must Know Facts For Your Next Test

1. The Shapley Value was developed by Lloyd Shapley in 1953 and is widely used in economics, political science, and computer science.
2. It is calculated using a formula that considers all possible permutations of player contributions, ensuring that every potential coalition is analyzed.
3. The Shapley Value assigns each player a unique payout based on their contribution and how their absence would affect the coalition's value.
4. In political contexts, the Shapley Value can help analyze voting power by assessing how individual votes contribute to forming winning coalitions.
5. In artificial intelligence, the Shapley Value can be applied to multi-agent systems to evaluate the performance of different agents and allocate rewards fairly.

Review Questions

• How does the Shapley Value ensure fairness in cooperative scenarios?
  • The Shapley Value guarantees fairness by allocating payoffs based on each player's marginal contribution to the coalition. It evaluates all possible combinations of players joining or leaving and calculates how much each individual adds to the group's success. This ensures that players receive compensation proportional to their contribution, preventing scenarios where one player might benefit disproportionately from the coalition's efforts.
• Discuss how the Shapley Value can be applied to analyze voting systems and coalition formation.
  • In voting systems, the Shapley Value can quantify the power of individual voters by assessing how their votes contribute to forming winning coalitions. By analyzing different combinations of voters and their influence on election outcomes, it helps identify key players whose votes are crucial for victory. This understanding can lead to more equitable voting mechanisms and better representation of minority interests in political coalitions.
• Evaluate the implications of using the Shapley Value in artificial intelligence and multi-agent systems regarding resource allocation and agent performance.
  • Applying the Shapley Value in artificial intelligence helps create fair mechanisms for resource allocation among agents in multi-agent systems. By assessing each agent's contribution to collective tasks or objectives, it promotes cooperation and ensures that rewards are distributed based on actual performance rather than arbitrary criteria. This leads to improved efficiency, as agents are motivated to collaborate effectively while being fairly compensated for their efforts.

Related terms

Coalition: A group of players who cooperate to achieve a common goal in a game, often pooling their resources or efforts to increase their overall benefit.

Marginal Contribution: The additional value or benefit that a player brings to a coalition when they join, crucial for determining their fair share in the Shapley Value.

Nash Equilibrium: A situation in non-cooperative games where no player can benefit by unilaterally changing their strategy, reflecting stability among the chosen strategies.