DEFINITION of 'Shapley Value'
In game theory, a manner of fairly distributing both gains and costs to several actors working in coalition. The Shapley value applies primarily in situations when the contributions of each actor are unequal. The Shapley value ensures each actor gains as much or more as they would have from acting independently. This is important, because otherwise there is no incentive for actors to collaborate.
INVESTOPEDIA EXPLAINS 'Shapley Value'
A famous example of the Shapley value in practice is the airport problem. In the problem, an airport needs to be built in order to accommodate a range of aircraft which require different lengths of runway. The question is how to distribute the costs of the airport to all actors in an equitable manner. The solution is simply to spread the marginal cost of each required length of runway amongst all the actors needing a runway of at least that length. In the end, actors requiring a shorter runway pay less, and those needing a longer runway pay more. However, none of the actors pay as much as they would have if they had chosen not to cooperate.

ZeroSum Game
A situation in which one person’s gain is equivalent to another’s ... 
John F. Nash Jr.
An American mathematician who won the 1994 Nobel Memorial Prize ... 
Trembling Hand Perfect Equilibrium
In game theory, an equilibrium state that takes into consideration ... 
Tit For Tat
A gametheory mechanism which is subject to a payoff matrix similar ... 
Prisoner's Dilemma
A paradox in decision analysis in which two individuals acting ... 
Game Theory
A model of optimality taking into consideration not only benefits ...

Options & Futures
Game Theory: Beyond The Basics
Take your game theory knowledge to the next level by learning about simultaneous games and the Nash Equilibrium. 
Fundamental Analysis
The Basics Of Game Theory
Break down and examine the potential consequences of economic/financial scenarios. 
Personal Finance
What Drives Consumer Demand for Tesla?
Tesla did not invent the electric vehicle market, but it has brought to it elements of luxury and elite status. But what really drives demand for Teslas? 
Economics
How A Limited Government Affects A Country's Finances
Countries with limited governments have fewer laws about what individuals and businesses can and can’t do. What's the net result? 
Investing Basics
How Does Goodwill Affect Financial Statements?
Goodwill is a bit of a paradoxintangible, yet it is recorded as an asset on the purchasing company's balance sheet. 
Investing Basics
Using Normal Distribution Formula To Optimize Your Portfolio
Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk. 
Investing Basics
RSquared
Learn more about this statistical measurement used to represent movement between a security and its benchmark. 
Insurance
The Government And Risk: A LoveHate Relationship
Though the U.S. government can help its citizens by subsidizing risky loans, the costs always come back to the taxpayers. 
Fundamental Analysis
Can Good News Be A Signal To Sell?
Sometimes positive announcements can mean bad news for a stock. Find out why. 
Fundamental Analysis
Ethical Investing Tutorial
Learn everything there is to know about ethical investing.