§ 2.4 - 2.5 The Shapley-Shubik Power Index.pptVIP

§ 2.4 - 2.5 The Shapley-Shubik Power Index * The Shapley-Shubik Power Index When discussing power of a coalition in terms of the Banzhaf Index we did not care about the order in which player’s cast their votes. In other words, yesterday we considered {P1 ,P2} and {P2 ,P1} to be the same coalition. The Shapley-Shubik Power Index The Shapley-Shubik Power Index concerns itself with sequential coalitions--coalitions in which the order that players join matters. Example: Let us consider the coalition {P1 ,P2,P3}. How many sequential coalitions contain these players? We have the following sequential coalitions: P1 , P2, P3 ? ? P1 , P3, P2 ? ? P2 , P1, P3 ? ? P2 , P1, P3 ? ? P3 , P1, P2 ? ? P3 , P2, P1 ? We can see that there are a total of 6.(In the first sequential coalition what we are saying is that P1 starteed the coaliton, then P2 joined who in turn was followed byP3.) The Shapley-Shubik Power Index The Shapley-Shubik Power Index concerns itself with sequential coalitions--coalitions in which the order that players join matters. In general, the number of sequential coalitions with N players is: N ! = (N)(N - 1). . .(2)(1) The Shapley-Shubik Power Index In each (winning) sequential coalition there is a pivotal player--a player whose joining causes the coalition to change from a losing coalition to a winning coalition. We will use the concept of the pivotal player to define the Shapley-Shubik Power Index. Example: Let us return to our example of the countries with the funny names. (ie - The [10: 6, 5, 4] example from yesterday.) We have already seen that the 6 possible sequential coalitions are: ? P1 , P2, P3 ? ? P1 , P3, P2 ?? P2 , P1, P3 ? ? P2 , P1, P3 ?? P3 , P1, P2 ? ? P3 , P2, P1 ? Example: Let us return to our example of the countries with the funny names. (ie - The [10: 6, 5, 4] example from yesterday.) We have already seen that the 6 possible sequential coalitions are: Sequential Coalition Pivotal Player? P1