Null or Nullifying Players: The Difference between the Shapley Value and Equal Division Solutions

    Research output: Contribution to JournalArticleAcademic

    Abstract

    A famous solution for cooperative transferable utility games is the Shapley value. Most axiomatic characterizations of this value use some axiom related to null players, i.e. players who contribute zero to any coalition. We show that replacing null players with nullifying players characterizes the equal division solution distributing the worth of the 'grand coalition' equally among all players. A player is nullifying if every coalition containing this player earns zero worth. Using invariance we provide similar characterizations of the equal surplus division solution assigning to every player its own worth, and distributing the remaining surplus equally among all players. © 2006 Elsevier Inc. All rights reserved.
    Original languageEnglish
    Pages (from-to)767-775
    JournalJournal of Economic Theory
    Volume136
    DOIs
    Publication statusPublished - 2007

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