The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Shapley, Lloyd S. (Born 1923)

  • Manel Baucells
  • Raul Lejano
  • Cheng-Zhong Qin
Reference work entry


Lloyd Shapley is considered one of the pioneers of game theory. His most prominent contributions are the inception and study of value theory and core theory. These two theories are the key to solving problems involving the allocation of goods or payoffs achievable through cooperation. Shapley’s contributions have led to a broad range of important achievements, such as the exploration of stable solutions for matching and exchange, the measurement of power and a deeper understanding of market economies. His contributions to non-cooperative game theory include the introduction of stochastic games, strategic market games and potential games. Shapley shared with Alvin E. Roth the 2012 Nobel Prize in Economic Sciences.


Assignment Bargaining theory Coalitions Cooperative game theory Core Cost allocation Deferred-acceptance algorithm Game theory Incomplete preferences Matching Ordinal solutions Potential games Shapley Shapley value Stochastic games Utility categories 

JEL Classifications

C7 C71 C72 C73 C78 D5 D51 D58 
This is a preview of subscription content, log in to check access.


  1. Aumann, R.J. 1962. Utility theory without the completeness axiom. Econometrica 30(3): 445–462.CrossRefGoogle Scholar
  2. Aumann, R.J., and M. Kurz. 1977. Power and taxes. Econometrica 45(5): 1137–1161.CrossRefGoogle Scholar
  3. Bahn, O., M. Breton, L. Sbragia, and G. Zaccour. 2009. Stability of international environmental agreements: an illustration with asymmetrical countries. International Transactions in Operational Research 16(3): 307–324.CrossRefGoogle Scholar
  4. Bergantiños, G., and J.J. Vidal-Puga. 2007. A fair rule in minimum cost spanning tree problems. Journal of Economic Theory 137(1): 326–352.CrossRefGoogle Scholar
  5. Billera, L.J. 1974. On games without side payments arising from a general class of markets. Journal of Mathematical Economics 1(2): 129–139.CrossRefGoogle Scholar
  6. Debreu, G., and H. Scarf. 1963. A limit theorem on the core of an economy. International Economic Review 4(3): 235–246.CrossRefGoogle Scholar
  7. Gillies, D.B. 1959. Solutions to general non-zero-sum games. In Contributions to the theory of games IV, ed. A.W. Tucker and R.D. Luce. Princeton: Princeton University Press.Google Scholar
  8. Harsanyi, J.C. 1963. A simplified bargaining model for the n-person cooperative game. International Economic Review 4(2): 194–220.CrossRefGoogle Scholar
  9. Hart, S., and A. Mas-Colell. 1989. Potential, value, and consistency. Econometrica 57(3): 589–614.CrossRefGoogle Scholar
  10. Jackson, M.O. 2008. Social and economic networks. Princeton: Princeton University Press.Google Scholar
  11. Lejano, R.P., and C.A. Davos. 1999. Cooperative solutions for sustainable resource management. Environmental Management 24(2): 167–175.CrossRefGoogle Scholar
  12. Leonard, R. 2010. Von Neumann, Morgenstern, and the creation of game theory: From chess to social science, 1900–1960. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  13. Littlechild, S.C., and G.F. Thompson. 1977. Aircraft landing fees: A game theory approach. The Bell Journal of Economics 8(1): 186–204.CrossRefGoogle Scholar
  14. Maschler, M., and G. Owen. 1989. The consistent Shapley value for hyperplane games. International Journal of Game Theory 18(4): 389–407.CrossRefGoogle Scholar
  15. Mas-Colell, A., M.D. Whinston, and J. Green. 1995. Microeconomic theory. Oxford: Oxford University Press.Google Scholar
  16. Moulin, H. 1991. Axioms of cooperative decision making, Econometric Society Monographs, Vol. 15. Cambridge: Cambridge University Press.Google Scholar
  17. Myerson, R.B. 1992. Fictitious-transfer solutions in cooperative game theory. In Rational interaction: Essays in Honor of John C. Harsanyi, ed. R. Selten, 13–33. Berlin: Springer.CrossRefGoogle Scholar
  18. Niyato, D. and Hossain, E. 2006. A cooperative game framework for bandwidth allocation in 4G heterogeneous wireless networks. ICC’06. IEEE International Conference on Communications, 9, 4357–4362.Google Scholar
  19. Qin, C.-Z. 1993. A conjecture of Shapley and Shubik on competitive outcomes in the cores of NTU market games. International Journal of Game Theory 22(4): 335–344.CrossRefGoogle Scholar
  20. Roth, A.E., and M.A.O. Sotomayor. 1992. Two-Sided Matching: A study in game-theoretic modeling and analysis, Econometric Society Monographs, Vol. 18. Cambridge: Cambridge University Press.Google Scholar
  21. Samet, D., and Z. Safra. 2005. A family of ordinal solutions to bargaining problems with many players. Games and Economic Behavior 50(1): 89–106.CrossRefGoogle Scholar
  22. Shubik, M. 1982. Game theory in the social sciences: Concepts and solutions. Cambridge: MIT Press.Google Scholar
  23. Starr. 1969. Quasi-equilibria in markets with non-convex preferences. Econometrica 37(1): 25–38.CrossRefGoogle Scholar
  24. Young, H.P. 1985. Monotonic solutions of cooperative games. International Journal of Game Theory 14: 65–72.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Manel Baucells
    • 1
  • Raul Lejano
    • 1
  • Cheng-Zhong Qin
    • 1
  1. 1.