The Shapley Value

The Shapley Value is a concept from cooperative game theory that helps determine how to fairly distribute rewards among participants who contribute to a collective effort. Imagine a group of friends who work together on a project. The Shapley Value calculates each person’s contribution by considering all possible ways they could join the team, assessing how much value they add in each scenario. This method ensures that everyone receives a fair share based on their actual contribution, rather than arbitrary decisions. It promotes fairness and incentivizes cooperation by recognizing both individual and group effort.