Abstract: The dynamic alliance is considered as the most promising organizational structure of the 21st century.It enhances competitive forces and makes enterprises respond to unpredictable changes of the market better.But as a new organizational form,it also has many problems to be studied.One of those is profit allocation.This paper introduces the Shapley Value algorithm and applies it to the profit allocation among cooperation partners in the dynamic alliance.Besides these,some good qualities and shortcomings are also analyzed in the paper.A modified method based on venture is presented to improve the algorithm in the end.

Key words: dynamic alliance, Shapley Value algorithm, profit allocation, modified method