On the Probabilistic Relationship Between the Public Good Index and the Normalized Banzhaf Index
In this paper we develop a probabilistic interpretation for the normalized Banzhaf index and the public good index. We then derive a way to decompose the normalized Banzhaf index into two parts. The first of them relates the Banzhaf index with the public good index and the other one on special type of luck. Similarities and differences of the two indices are then discussed.
KeywordsPower Index Coalition Formation Policy Outcome Probabilistic Interpretation Winning Coalition
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