Macroeconomics Exam Review 99

Macroeconomics Exam Review 99 - 3.7 The characteristic...

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Unformatted text preview: 3.7 The characteristic function of cost allocation game is ( ) = 0 ( , ) = 210 ( ) = 0 ( , ) = 770 ( ) = 1530 ( ) = 0 ( , ) = 1170 The following table details the computation of the Shapley value for player . ( ) ( ∖ { } ) ( ( ) − ( ∖ { } )) 1 / 3 , 1 / 6 210 35 , 1 / 6 770 128 1 / 3 ,, 1 / 3 1530 1170 120 ( ) 283 1 / 3 Thus = 283 1 / 3 . Similarly, we can calculate that = 483 1 / 3 and = 763 1 / 3 . 3.8 ∑ ∈ = ∑ ∈ ( ∑ ∋ ( ( ) − ( ∖ { } )) ) = ∑ ∋ ( ∑ ∈ ( ( ) − ( ∖ { } )) ) = ∑ ⊆...
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This note was uploaded on 01/16/2012 for the course ECO 2024 taught by Professor Dr.dumond during the Fall '10 term at FSU.

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