Conservation of energy in value theory

Conservation of energy in value theory

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Article ID: iaor19992517
Country: Germany
Volume: 47
Issue: 3
Start Page Number: 423
End Page Number: 449
Publication Date: Jan 1998
Journal: Mathematical Methods of Operations Research (Heidelberg)
Authors:
Abstract:

The potential approach of value theory is extended with respect to a new characterizing property called conservation giving a clear interpretation of the potential. Many analogues between game theory and physics are presented. Particularly, there is a theorem of conservation of energy analogous to the highly important one in classical mechanics. Moreover, the Shapley-Value gets a new interpretation as the marginal contribution to a certain average in contrast to that as an average marginal contribution instead. The Banzhaf-Index can also be uniquely characterized by this approach. Finally, all results are extended to games with a continuum of players of finitely many types.

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