Developed by Lloyd S. Shapley (A Value for n-Person Games, 1953).
Divides the value a group creates by averaging each member's added contribution across every order in which the group could have formed.
When to reach for it
When splitting profit in an alliance, allocating a shared cost, or attributing credit among contributors whose work combines.
How it runs
- Define what each subset of members could achieve alone.
- For each member, compute the value added on joining each subset.
- Average those contributions over all joining orders.
- Use each member's average as their fair share.
Where it sits in SOLVE eX
Go to the source
- A Value for n-Person Games, Contributions to the Theory of Games, Volume II, Princeton University Press, 1953