Shapley wages in an entrepreneur-worker game
ID: shapley-wages-in-an-entrepreneur-worker-game
An entrepreneur is indispensable and a coalition containing the entrepreneur and of workers earns ; a coalition without the entrepreneur earns zero. A worker's marginal contribution is nonzero only when the entrepreneur precedes them. The probability that the entrepreneur and exactly other workers precede that worker is , giving the displayed common Shapley value wage. The entrepreneur receives . Convex nondecreasing makes all marginal contributions increase with predecessor sets, so the whole Shapley value allocation belongs to the core.
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