A non-parametric approach to testing the axioms of the Shapley value with limited data

B-Tier
Journal: Games and Economic Behavior
Year: 2018
Volume: 111
Issue: C
Pages: 41-63

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The unique properties of the Shapley value–efficiency, equal treatment of identical input factors, and marginality–have made it an appealing solution concept in various classes of problems. It is however recognized that the pay schemes utilized in many real-life situations generally depart from this value. We propose a non-parametric approach to testing the empirical content of this concept with limited datasets. We introduce the Shapley distance, which, for a fixed monotone transferable-utility game, measures the distance of an arbitrary pay profile to the Shapley pay profile, and show that it is additively decomposable into the violations of the classical Shapley axioms. The analysis has several applications. In particular, it can be used to assess the extent to which an income distribution can be considered fair or unfair, and whether any particular case of unfairness is due to the violation of one or a combination of the Shapley axioms.

Technical Details

RePEc Handle
repec:eee:gamebe:v:111:y:2018:i:c:p:41-63
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24