Hervé Moulin :
Fair Division on the Internet
Abstract:
We now assume that the manna consists of perfect substitutes goods, so that
preferences are represented by additive utilities. Such preferences are realistic
when we divide the manna into truly "unrelated" goods such as a computer,
a bicycle and a portrait in the family heirlooms, where the pair of matching
chandeliers must be counted as one item. The practicality of eliciting additive
utilities is illustrated by the success of SPLIDDIT (www.spliddit.org/) designed
by Goldman & Procaccia (2014), a user-friendly platform where users report
additive utilities by dividing 1000 points over the items.
In the additive domain, the prominent division rule is the Competitive one,
obtained by endowing all agents with an equal virtuel budget, and finding the
unique price at which competitive demands clear the manna. Interestingly, this
rule is deeply connected to a well known solution of the general bargaining
problem.
For details on the two problems see Lecture 2 in this file
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