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On the Probabilistic Relationship between the Public Good Index and the Normalized Banzhaf Index

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  • WidgrÉn, Mika

Abstract

In this paper we develop a probablistic interpretation for the normalized Banzhaf index and the public good index. We then derive a way to decompose the normalized Banzhaf index into two parts. The first of them relates the Banzhaf index with the public good index and the other one on a special type of luck. Similarities and differences of the two indices are then discussed.
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Suggested Citation

  • WidgrÉn, Mika, 2002. "On the Probabilistic Relationship between the Public Good Index and the Normalized Banzhaf Index," Discussion Papers 707, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:707
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