:Lloyd Shapley

{{for|Lloyd Stowell Shapley's grand-uncle, the United States navy captain|Lloyd Stowell Shapley}}

{{Infobox scientist

| image = Shapley, Lloyd (1923).jpeg{{!}}border

| caption = Shapley in 1980

| birth_name = Lloyd Stowell Shapley

| birth_date = {{Birth date|1923|6|2}}

| birth_place = Cambridge, Massachusetts, U.S.

| death_date = {{death date and age|2016|3|12|1923|6|2}}

| death_place = Tucson, Arizona, U.S.

| alma_mater = Harvard University (BA)
Princeton University (PhD)

| spouse = Marian Louise Shapley (since 1955){{cite news |last1=Jain |first1=C |title=Spouse - source from NYTimes |work=The New York Times |date=March 15, 2016 |url=https://www.nytimes.com/2016/03/15/business/economy/lloyd-s-shapley-92-nobel-laureate-and-a-father-of-game-theory-is-dead.html }}

| doctoral_advisor = Albert W. Tucker{{mathgenealogy|id=46053}}

| doctoral_students =

| thesis_title = Additive and non-additive set functions

| thesis_url = https://www.proquest.com/docview/302034176/

| thesis_year = 1953

| known_for = Shapley value
Shapley–Shubik power index
stochastic games
Bondareva–Shapley theorem
[[Shapley–Folkman lemma|Shapley–Folkman lemma

& theorem]]
Gale–Shapley algorithm
potential game
core, kernel, and nucleolus
market games
authority distribution
multi-person utility
non-atomic games

| awards = Nobel Memorial Prize in Economic Sciences (2012)
10px Bronze Star Medal (1944)
Golden Goose Award (2013)
John von Neumann Theory Prize (1981)

| field = Mathematics, economics

| work_institution = {{nowrap|University of California, Los Angeles}}
RAND Corporation
Princeton University

| website = {{URL|http://www.econ.ucla.edu/shapley/}}

}}

Lloyd Stowell Shapley ({{IPAc-en|ˈ|ʃ|æ|p|l|i}}; June 2, 1923 – March 12, 2016) was an American mathematician and Nobel Memorial Prize-winning economist. He contributed to the fields of mathematical economics and especially game theory. Shapley is generally considered one of the most important contributors to the development of game theory since the work of von Neumann and Morgenstern.Roth, A.E., Introduction to the Shapley Value, in "The Shapley Value: Essays in Honor of Lloyd S. Shapley", Cambridge University Press, 1988. With Alvin E. Roth, Shapley won the 2012 Nobel Memorial Prize in Economic Sciences "for the theory of stable allocations and the practice of market design."{{Cite news|url=https://www.economist.com/blogs/freeexchange/2016/03/matchmaker-heaven|title=Lloyd Shapley, a Nobel laureate in economics, has died|newspaper=The Economist|issn=0013-0613|access-date=March 13, 2016}}{{cite journal|url=http://marketdesigner.blogspot.com/2016/03/lloyd-s-shapley-1923-2016.html|title=Lloyd S. Shapley 1923– 2016|last=Roth|first=Al|date=March 12, 2016|journal=Nature|volume=532|issue=7598|page=178|doi=10.1038/532178a|pmid=27075091|bibcode=2016Natur.532..178R|s2cid=4469185|access-date=March 13, 2016|doi-access=free}}

Life and career

Lloyd Shapley was born on June 2, 1923, in Cambridge, Massachusetts, one of the sons of astronomers Harlow Shapley and Martha Betz Shapley, both from Missouri.{{cite news|url=https://www.nytimes.com/1981/01/27/obituaries/martha-betz-shapley.html|title=MARTHA BETZ SHAPLEY|date=January 27, 1981|work=The New York Times}} He attended Phillips Exeter Academy and was a student at Harvard when he was drafted in 1943. He served in the United States Army Air Corps in Chengdu, China and received the Bronze Star decoration for breaking the Soviet weather code.{{cite web|url=https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/2012/shapley-interview.html|title=Lloyd S. Shapley – Interview|publisher=Nobel Media AB| access-date = March 13, 2016}}

After the war, Shapley returned to Harvard and graduated with an A.B. in mathematics in 1948. After working for one year at the RAND Corporation, he went to Princeton University where he received a Ph.D. in 1953{{cite web | url = https://www.princeton.edu/main/news/archive/S35/03/02E57/index.xml | title = Princeton alumnus Shapley wins Nobel Prize | date= October 15, 2012 | access-date = March 13, 2016|publisher = Princeton University}} based on the thesis "Additive and non-additive set functions".{{r|AWT_LSShapley}}{{cite web

|url=https://perso.uclouvain.be/pierre.dehez/Shapley/Shapley-Thesis.pdf

|title=Additive and non-additive set functions

| author=L.S. Shapley|year=1953| access-date = May 13, 2021

}} His thesis and post-doctoral work introduced the Shapley value and the core solution in game theory. Shapley defined game theory as "a mathematical study of conflict and cooperation." After graduating, he remained at Princeton for a short time before going back to the RAND corporation from 1954 to 1981. In 1950, while a graduate student, Shapley invented the board game So Long Sucker, along with Mel Hausner, John Forbes Nash, and Martin Shubik.Hausner, M., Nash, J. F., Shapley, L. S. & Shubik, M., (1964), "So Long Sucker, A Four-Person Game", Game Theory and Related Approaches to Social Behavior, John Wiley & Sons, Inc., New York. Israeli economist and Nobel Laureate Robert Aumann considered Shapley to be "the greatest game theorist of all time."Hagerty, James, Lloyd Shapley: 1923–2016, Wall Street Journal, March 19–20, 2016, p. A7.

File:Lloyd Shapley 2 2012.jpg

From 1981 until his death, Shapley was a professor at the University of California, Los Angeles (UCLA), serving at the time of his death as a professor emeritus there, affiliated with the Mathematics and Economics departments. He died on March 12, 2016, in Tucson, Arizona, after suffering from a broken hip, at the age of 92.

Shapley was an expert Kriegspiel player, and an avid baseball fan.

Contribution

Along with the Shapley value, stochastic games, the Bondareva–Shapley theorem (which implies that convex games have non-empty cores), the Shapley–Shubik power index (for weighted or block voting power), the Gale–Shapley algorithm for the stable marriage problem, the concept of a potential game (with Dov Monderer), the Aumann–Shapley pricing, the Harsanyi–Shapley solution, the Snow–Shapley theorem for matrix games, and the Shapley–Folkman lemma & theorem bear his name. According to The Economist, Shapley "may have thought of himself as a mathematician, but he cannot avoid being remembered for his huge contributions to economics".{{cite news | url = https://www.economist.com/blogs/freeexchange/2016/03/matchmaker-heaven | title = Matchmaker in heaven – Lloyd Shapley, a Nobel laureate in economics, has died | newspaper = The Economist | access-date = March 13, 2016 | date = March 13, 2016}} The American Economic Association noted that Shapley was "one of the giants of game theory and economic theory".{{cite web | url = https://www.aeaweb.org/PDF_files/Bios/Shapley_bio.pdf | access-date = March 13, 2016 | publisher = American Economic Association | title = Lloyd Shapley | url-status = dead | archive-url = https://web.archive.org/web/20160316223210/https://www.aeaweb.org/PDF_files/Bios/Shapley_bio.pdf | archive-date = March 16, 2016 | df = mdy-all }}

Besides, his early work with R. N. Snow and Samuel Karlin on matrix games was so complete that little has been added since. He has been instrumental in the development of utility theory, and it was he who laid much of the groundwork for the solution of the problem of the existence of Von Neumann–Morgenstern stable sets. His work with M. Maschler and B. Peleg on the kernel and the nucleolus, and his work with Robert Aumann on non-atomic games and on long-term competition have all appeared in economic theory.{{Cite book | url = https://books.google.com/books?id=qWyjAQAAQBAJ&q=shapley+%22utility+theory%22&pg=PA385 | title = Economic Thinkers: A Biographical Encyclopedia | page = 385 | last = Diertele | first = David A. | access-date = 2016-03-13| isbn = 9780313397479 | date = 2013-08-08 | publisher = Abc-Clio }}

Shapley argued with his sons about whether he should accept the Nobel Prize at all. He opined that his father, the astronomer Harlow Shapley, deserved it more. His sons persuaded him to accept it and accompanied him to Stockholm.Hagerty, James, Lloyd Shapley: 1923–2016, Wall Street Journal, March 19–20, 2016, p.A7

Awards and honors

Bronze Star, U.S. Army Air Corps, 1944
Procter Fellow, Princeton University, 1951–52
Fellow, Econometric Society, 1967{{cite web | url = http://www.econ.ucla.edu/shapley/ShapleyBio.1.html | title = Lloyd Stowell Shapley – Vita | access-date = March 13, 2016 | publisher = UCLA}}
Fellow, American Academy of Arts and Sciences, 1974
Member, National Academy of Sciences, 1978
John von Neumann Theory Prize, 1981
Honorary Ph.D., Hebrew University of Jerusalem, 1986
Fellow, INFORMS (Institute for Operations Research and the Management Sciences), 2002{{cite web | url = https://www.informs.org/Connect-with-People/Fellows/INFORMS-Fellows-Class-of-2002 | title = INFORMS – Fellows Class of 2002 | publisher = Institute for Operations Research and the Management Sciences | access-date = March 13, 2016 | url-status = dead | archive-url = https://web.archive.org/web/20160314012641/https://www.informs.org/Connect-with-People/Fellows/INFORMS-Fellows-Class-of-2002 | archive-date = March 14, 2016 | df = mdy-all }}
Distinguished Fellow, American Economic Association, 2007{{cite web | url = https://www.aeaweb.org/honors_awards/disting_fellows.php | title = Distinguished Fellows | publisher = American Economic Association | access-date = March 13, 2016}}
Fellow, American Mathematical Society, 2012[http://www.ams.org/profession/fellows-list List of Fellows of the American Mathematical Society], retrieved July 18, 2013.
Sveriges Riksbank Nobel Memorial Prize in Economic Sciences, 2012
Golden Goose Award, 2013{{cite web | title=Market Design | url=http://www.goldengooseaward.org/awardees/zfh0utmzft7uewzc3lscuvdp21ogw2 | publisher=The Golden Goose Award | access-date=May 27, 2015}}

Selected publications

A Value for n-person Games [1953], In Contributions to the Theory of Games volume II, H. W. Kuhn and A. W. Tucker (eds.).
Stochastic Games [1953], Proceedings of National Academy of Science Vol. 39, pp. 1095–1100. {{doi|10.1073/pnas.39.10.1095}}
A Method for Evaluating the Distribution of Power in a Committee System [1954] (with Martin Shubik), American Political Science Review Vol. 48, pp. 787–792.
College Admissions and the Stability of Marriage [1962] (with David Gale), The American Mathematical Monthly Vol. 69, pp. 9–15.
Simple Games : An Outline of the Descriptive Theory [1962], Behavioral Science Vol. 7, pp. 59–66.
On Balanced Sets and Cores [1967], Naval Research Logistics Quarterly Vol. 14, pp. 453–460.
On Market Games [1969] (with Martin Shubik), Journal of Economic Theory Vol. 1, pp. 9–25.
Utility Comparison and the Theory of Games [1969], La Decision, pp. 251–263.
Cores of Convex Games [1971] International Journal of Game Theory Vol. 1, pp. 11–26.
The Assignment Game I: The Core [1971] (with Martin Shubik), International Journal of Game Theory Vol. 1, pp. 111–130.
Values of Non-Atomic Games [1974] (with Robert Aumann), Princeton University Press.
Mathematical Properties of the Banzhaf Power Index [1979] (with Pradeep Dubey), Mathematics of Operations Research Vol. 4, pp. 99–132.
Long-Term Competition – A Game-Theoretic Analysis [1994] (with Robert Aumann), in Essays in Game Theory: In Honor of Michael Maschler, Nimrod Megiddo (ed.), Springer-Verlag.
Potential Games [1996] (with Dov Monderer), Games and Economic Behavior Vol. 14, pp. 124–143.
On Authority Distributions in Organizations [2003] (with Xingwei Hu), Games and Economic Behavior Vol. 45, pp. 132–152, 153–170.
Multiperson Utility [2008] (with Manel Baucells). Games and Economic Behavior Vol. 62, pp. 329–347.

References

External links

[https://web.archive.org/web/20061001143028/http://www.ma.huji.ac.il/~mseyal/shapley4to95.pdf The Shapley Value]

[https://web.archive.org/web/20121203072321/http://www.informs.org/Recognize-Excellence/Award-Recipients/Lloyd-S.-Shapley Citation of von Neumann Theory Prize on L.S.Shapley's work]: "Lloyd Shapley has dominated game theory for the thirty-seven years since von Neumann and Morgenstern published their path-breaking book, The Theory of Games and Economic Behavior."

[https://www.informs.org/About-INFORMS/History-and-Traditions/Biographical-Profiles/Wolfe-Philip Albert Tucker's comment on L.S.Shapley's work]. In 1995, Albert W. Tucker mentioned in his passing that Shapley was second only to Von Neumann as the most important researcher in theory of games so far. Philip Wolfe Interview by Irv Lustig, May 4, 2001. Video by Irv Lustig, Short Hills, NJ.

{{Nobelprize|name=Lloyd S. Shapley}} including the Nobel Lecture

[https://web.archive.org/web/20110719104159/http://ratio.huji.ac.il/dp/dp428.pdf Robert Aumann's Nobel lecture], also see here [http://www.huji.ac.il/dovrut/nobel_lecture.doc].

[http://newsroom.ucla.edu/releases/ucla-mourns-the-passing-of-nobel-laureate-lloyd-shapley-92 UCLA – In Memoriam]

[https://www.informs.org/content/view/full/271822 Biography of Lloyd S. Shapley] from the Institute for Operations Research and the Management Sciences

{{cite web|title=Lloyd S. Shapley|url=https://econpapers.repec.org/RAS/psh559.htm|publisher=EconPapers}}

{{cite web|title= Lloyd Shapley|url=https://www.jstor.org/action/doBasicSearch?Query=au%3A%22Lloyd+Shapley%22+&acc=off&wc=on&fc=off&group=none|publisher=JSTOR}}

{{s-bef | before = Thomas J. Sargent | before2 = Christopher A. Sims }}

{{s-ttl | title = Laureate of the Nobel Memorial Prize in Economics | years = 2012 | alongside = Alvin E. Roth }}

{{s-aft | after = Eugene F. Fama | after2 = Lars Peter Hansen | after3 = Robert J. Shiller }}

Category:1923 births

Category:2016 deaths

Category:People from Cambridge, Massachusetts

Category:John von Neumann Theory Prize winners

Category:American Nobel laureates

Category:Nobel laureates in Economics

Category:Members of the United States National Academy of Sciences

Category:Fellows of the Econometric Society

Category:Fellows of the Institute for Operations Research and the Management Sciences