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Banzhaf power index

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The Banzhaf Power Index is the probability of changing an outcome of a vote where power is not equally divided among the voters or shareholders.

Consider the U.S. Electoral College. Each state has more or less power than the next state. There are a total of 538 electoral votes. A majority vote is considered 270 votes. The Banzhaf Power Index would be a mathematical representation of how likely a single state would be able to swing the vote. For a state such as California, which is allocated 55 electoral votes, they would be more likely to swing the vote than a state such as Montana, which only has 3 electoral votes.

Example

The United States is having a presidential election between a Republican and a Democrat. For simplicity, suppose that only three states are participating: California (55 electoral votes), Texas (34 electoral votes), and New York (31 electoral votes).

The possible outcomes of the election are:

California (55) Texas (34) New York (31) R votes D votes States that could swing the vote
R R R 120 0 none
R R D 89 31 California (D would win 86-34), Texas (D would win 65-55)
R D R 86 34 California (D would win 89-31), New York (D would win 65-55)
R D D 55 65 Texas (R would win 89-31), New York (R would win 86-34)
D R R 65 55 Texas (D would win 89-31), New York (D would win 86-34)
D R D 34 86 California (R would win 89-31), New York (R would win 65-55)
D D R 31 89 California (R would win 86-34), Texas (R would win 65-55)
D D D 0 120 none

The Banzhaf Power Index of a state is the proportion of the possible outcomes in which that state could swing the election. In this example, all three states have the same index: 4/8=0.5.

However, if New York is replaced by Ohio, with only 20 electoral votes, the situation changes dramatically.

California (55) Texas (34) Ohio (20) R votes D votes States that could swing the vote
R R R 109 0 California (D would win 55-54)
R R D 89 20 California (D would win 75-34)
R D R 75 34 California (D would win 89-20)
R D D 55 54 California (D would win 109-0)
D R R 54 55 California (R would win 109-0)
D R D 34 75 California (R would win 89-20)
D D R 20 89 California (R would win 75-34)
D D D 0 109 California (R would win 55-54)

In this example, California has a Banzhaf Power Index of 1 while Texas and Ohio have no power at all!

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