The Shapley Value
To solve a cooperative game is to stipulate how much each player should pay in a cost situation, or receive in a profit situation. Any solution ought to satisfy two sensible conditions:
• A solution must be individually rational,as we have already seen. If a solution to a cooperative game is worse for a certain player than what she can obtain by herself, then why would she cooperate?
• A solution must be feasible. This means that the sum of the costs or profits given by the solution must equal the total bill or profit derived. This sense of feasibility is called “efficiency” by economists. An efficient solution is one that neither allocates more than what is available nor leaves any money on the table.
In 1953 Shapley devised ...