← The collection

Shapley Value.

Divide a shared surplus by inspecting every joining order.

Interactive experimentintuitiveField note ·
Preparing the experiment…
THE SHORT VERSION

Shapley Value, explained.

The Shapley value allocates a cooperative game's total value by averaging each participant's marginal contribution over all joining orders.

01 / THE MECHANISM

Why it happens

Singletons create zero; AB creates 60, AC 20, BC 40 and ABC 90. Inspect six permutations, calculate the added value when each participant joins, then average the contributions. The resulting allocation is A=30, B=40, C=20.

The Shapley value allocates a cooperative game's total value by averaging each participant's marginal contribution over all joining orders.

Read the result

A participant's contribution in one order need not match the average. Check that all assigned contributions sum to the grand coalition's value.

02 / FOLLOW IT THROUGH

A worked example

Three collaborators create ninety units

  1. Inspect A→B→C: A adds zero, B adds sixty and C adds thirty as the coalition grows.

  2. Switch to B→C→A: B adds zero, C adds forty and A adds fifty, despite unchanged coalition values.

  3. Average all six orders to obtain A thirty, B forty and C twenty. The allocation depends on the specified coalition-value table.

OPTIONAL DEEPER DETAILGo deeper: inside the model

Inside this model

Singletons create zero; AB creates 60, AC 20, BC 40 and ABC 90. Inspect six permutations, calculate the added value when each participant joins, then average the contributions. The resulting allocation is A=30, B=40, C=20.

03 / BEYOND THE EXPERIMENT

Where this idea is useful

A practical use

A collaboration can distinguish contribution to a coalition from a simple count of hours or the value a member creates alone.

CHECK YOUR INTUITION

A common misconception

THE TEMPTING CONCLUSION

“Standalone value alone determines a fair share.”

THE MORE USEFUL DISTINCTION

A participant can create little alone and add substantial value in combination. The Shapley rule formalises one allocation principle rather than establishing universal desert.

What this explanation leaves out

  • The coalition values are authored and transferable utility is assumed. The Shapley value is a solution concept under specified axioms, not an empirical measure of worth or a universally accepted account of fairness.
ONE MORE QUESTION

Can I use these shares to divide a real team's salary?

Only after justifying a transferable-value model and its coalition estimates. Actual compensation also involves rights, contracts and fairness considerations absent from this teaching table.

TAKE THE IDEA WITH YOU

What evidence would support the coalition values before debating how the surplus should be divided?

Associated thinkers

Associated withLloyd Shapley ↗

Associations marked provisional are awaiting source review.

Further reading

Explore the original research or the teaching reference behind this experiment.