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Hard · Game Theory & Logic · Quant Trader interview question · game-theory, shapley-value, cooperative-games, quantitative-finance
Three traders, A, B, and C, are considering forming a trading desk. The value $v(S)$ of each possible coalition $S$, measured in thousands of dollars, is: $v(\varnothing)=0$ $v(\{A\})=v(\{B\})=v(\{C\})=0$ $v(\{A,B\})=6$ $v(\{A,C\})=8$ $v(\{B,C\})=4$ $v(\{A,B,C\})=12$ Trader A's marginal contribution in a permutation is the increase in coalition value when A joins the traders appearing before A in that permutation. Trader A's Shapley value is the average of this marginal contribution over a