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Construct characteristic function

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Reference no: EM133503687

Question

Jhon has left an estate of Birr 200,000 to support his three ex-wives. Unfortunately, Jhon's attorney has determined that each ex-wife needs the following amount of money to take care of Jhon's children: wife 1 100,000 birr; wife 2 200,000 birr; wife 3 300,000 birr. Jhon's attorney must determine how to divide the money among the three wives. He defines the value of a coalition S of ex-wives to be the maximum amount of money left for the ex-wives in S after all ex-wives not in S receive what they need. Using this definition, construct a characteristic function for this problem. Then determine the core and Shapley value for this game.

Reference no: EM133503687

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