dolution

Howard Whose has left an estate of $200,000 to support his three ex-wives. Unfortunately, Howard’s attorney has determined that each ex-wife needs the following amount of money to take care of Howard’s children: wife 1—$100,000; wife 2—$200,000; wife 3—$300,000. Howard’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.