Surplus procedure

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The surplus procedure (SP) is a fair division protocol for dividing goods in a way that achieves proportional equitability. It can be generalized to more than 2=two people and is strategyproof. For three or more people it is not always possible to achieve a division that is both equitable and envy-free.

Contents

The surplus procedure was devised by Steven J. Brams, Michael A. Jones, and Christian Klamler in 2006. [1]

A generalization of the surplus procedure called the equitable procedure (EP) achieves a form of equitability. Equitability and envy-freeness can be incompatible for 3 or more players. [2]

Criticisms of the paper

There have been a few criticisms of aspects of the paper. [3] In effect the paper should cite a weaker form of Pareto optimality and suppose the measures are always strictly positive.

See also

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Fair division is the problem in game theory of dividing a set of resources among several people who have an entitlement to them so that each person receives their due share. That problem arises in various real-world settings such as division of inheritance, partnership dissolutions, divorce settlements, electronic frequency allocation, airport traffic management, and exploitation of Earth observation satellites. It is an active research area in mathematics, economics, dispute resolution, etc. The central tenet of fair division is that such a division should be performed by the players themselves, maybe using a mediator but certainly not an arbiter as only the players really know how they value the goods.

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The Austin moving-knife procedures are procedures for equitable division of a cake. They allocate each of n partners, a piece of the cake which this partner values as exactly of the cake. This is in contrast to proportional division procedures, which give each partner at least of the cake, but may give more to some of the partners.

Adjusted Winner (AW) is a procedure for envy-free item allocation. Given two agents and some goods, it returns a partition of the goods between the two agents with the following properties:

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Rental harmony is a kind of a fair division problem in which indivisible items and a fixed monetary cost have to be divided simultaneously. The housemates problem and room-assignment-rent-division are alternative names to the same problem.

The AL procedure is a procedure for fair item assignment between two people. It finds an envy-free item assignment of a subset of the items. Moreover, the resulting allocation is Pareto efficient in the following sense: there is no other envy-free allocation which is better for one person and not worse for the other person.

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References

  1. Better Ways to Cut a Cake by Steven J. Brams, Michael A. Jones, and Christian Klamler in the Notices of the American Mathematical Society December 2006.
  2. Brams, Steven J.; Michael A. Jones; Christian Klamler (December 2006). "Better Ways to Cut a Cake" (PDF). Notices of the American Mathematical Society . 53 (11): 1314–1321. Retrieved 2008-01-16.
  3. Cutting Cakes Correctly by Theodore P. Hill, School of Mathematics, Georgia Institute of Technology, Atlanta, GA, 2008