Glossary
Shapley Values
Shapley values is a concept in cooperative game theory that evaluates the marginal contribution of each player in a coalition game. It was introduced by Lloyd Shapley in 1953 and is widely used in various fields such as economics, political science, and computer science.
The key idea behind Shapley values is to allocate the total worth generated by a group of players to each player based on their contribution. This method is considered to be fair since it takes into account the individual contribution of each player and the synergies generated through cooperation.
To calculate the Shapley value, we need to consider all possible orderings of players in a coalition game and calculate the contribution of each player to the coalition's worth. The Shapley value of a player is the average of their contributions across all possible orderings.
Shapley values have several applications in real-world scenarios. For instance, they are used to analyze the distribution of profits among shareholders in a company. They can also be used to estimate the contribution of different marketing channels in generating revenue for a business.
In summary, Shapley values are a powerful tool for analyzing cooperative games where players receive rewards based on their contributions. They provide a fair and efficient way of distributing the total worth generated by a group of players.
A wide array of use-cases
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