LessWrong (Curated & Popular) “Understanding Shapley Values with Venn Diagrams” by Carson L
Dec 13, 2024
Carson Loughridge, an insightful author renowned for his work on Shapley values, dives into the fascinating world of cooperative games. He uses engaging Venn diagrams to clarify how Shapley values ensure fairness in profit-sharing. Carson illustrates these concepts with a lemonade stand scenario, making the intricate ideas accessible and relatable. With a focus on the synergy of contributions and the visual justification of Shapley properties, he transforms complex concepts into intuitive understandings that resonate.
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Lemonade Stand Profits
- Three friends, Emma, Liam, and you, open a lemonade stand.
- They use a time machine and Venn diagrams to fairly divide profits based on individual and combined contributions.
Synergy and Venn Diagrams
- Synergy in game theory represents the bonus profit from teamwork, exceeding individual contributions.
- Visualizing contributions and synergy with Venn diagrams helps understand profit distribution.
Fair Distribution Method
- Divide each synergy bonus equally among those involved.
- This fair distribution method results in what's known as Shapley values.
