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Question 2

(a) Comparison between Banzhaf Power Index and Shapley-Shubik Power Index with
respect to their underlying principles and calculation methods.

Banzhaf Power Index Shapley-Shubik Power Index


The Banzhaf Power Index principles: Shapley-Shubik Power Index principles:
1. Coalitions: The Banzhaf Power 1. In the Shapley-Shubik method the
Index considers the potential for assumption is that coalitions are
forming coalitions among the formed sequentially.
players. A coalition is any set of 2. In a sequential coalition, the order of
players who might join forces and the players does matter. There is a
vote the same way. “first” player, a “second” player, and
2. Critical Players: The Banzhaf so on.
Power Index focuses on critical 3. Pivotal player: A player who turns
players, who can change the what was a losing coalition into a
outcome of a vote by joining winning coalition. Every sequential
different coalitions. These critical coalition has one and only one
players are crucial in determining pivotal player.
the distribution of power among the
players.
3. Measure of Power: The Banzhaf
Power Index aims to provide a
measure of power that is
proportional to a player's ability to
affect the outcome of the vote. A
player’s power should be measured
by how often the player is a critical
player.
Calculation method: Calculation method:

1. List out the possible winning 1. list of all possible sequential


coalitions. coalitions of the players.
2. Determine the critical player for 2. Determine the pivotal player in each
each of the winning coalitions. sequential coalition and total up all
3. Count the number of times that a the coalition and denotes it as T.
player is critical. Let say player 1 3. Count the total number of times that
(denotes as P1), player 2 (P2)… PN. a player is pivotal. Let say player 1
The critical count for the players (denotes as P1), player 2 (P2)… PN.
denotes as BN. This gives SS1, the pivotal count for
4. Add all the total of Bs and denotes it P1 and repeats for each of the other
as T. players.
5. Find the ratio, βN between BN/T for 4. Find the ratio N = SSN/T. This gives
each of the player and this gives the the Shapley-Shubik power index.
Banzhaf power index.

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