Scandinavian Working Papers in Economics

Discussion Papers,
Norwegian School of Economics, Department of Business and Management Science

No 2015/16: Shapley-Based Stackelberg Leadership Formation in Networks

Ivan Belik () and Kurt Jörnsten ()
Additional contact information
Ivan Belik: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
Kurt Jörnsten: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway

Abstract: In the given research we study a leadership formation of the most influential nodes in networks. Specifically, we analyze the competition between a leader and a follower based on the Stackelberg leadership model. Applying the concept of Shapley value to measure node’s importance, we represent the mechanism of Shapley-based Stackelberg leadership formation in networks. The approach is tested and represented in tabular and graphical formats.

Keywords: Stackelberg competition; Shapley value; leadership; networks analysis

JEL-codes: C00; C60; C61; Z13

12 pages, April 10, 2015

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