Deep learning is increasingly used in financial modeling, but its lack of transparency raises risks. Using the well-known Heston option pricing model as a benchmark, researchers show that global ...

Cooperative game theory provides a robust framework for understanding how individuals or entities may form coalitions to achieve joint benefits. Central to this field is the Shapley value, a concept ...

Machine learning and artificial intelligence methods are often referred to as “black boxes” when compared with traditional regression-based approaches. However, both traditional and machine learning ...

We introduce the performance-based Shapley value (PBSV) to measure the contributions of individual predictors to the out-of-sample loss for time-series forecasting models. Our new metric allows a ...

Cooperative game theory is the study of strategic interactions in which players, or agents, form coalitions to achieve mutual benefits. A central concern in this area is the fair allocation of the ...