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Proportional (fair Division)
A proportional division is a kind of fair division in which a resource is divided among ''n'' partners with subjective valuations, giving each partner at least 1/''n'' of the resource by his/her own subjective valuation. Proportionality was the first fairness criterion studied in the literature; hence it is sometimes called "simple fair division". It was first conceived by Steinhaus. Example Consider a land asset that has to be divided among 3 heirs: Alice and Bob who think that it's worth 3 million dollars, and George who thinks that it's worth $4.5M. In a proportional division, Alice receives a land-plot that she believes to be worth at least $1M, Bob receives a land-plot that ''he'' believes to be worth at least $1M (even though Alice may think it is worth less), and George receives a land-plot that he believes to be worth at least $1.5M. Existence A proportional division does not always exist. For example, if the resource contains several indivisible items and the number ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fair Division
Fair division is the problem in game theory of dividing a set of resources among several people who have an Entitlement (fair division), entitlement to them so that each person receives their due share. The central tenet of fair division is that such a division should be performed by the players themselves, without the need for external arbitration, as only the players themselves really know how they value the goods. There are many different kinds of fair division problems, depending on the nature of goods to divide, the criteria for fairness, the nature of the players and their preferences, and other criteria for evaluating the quality of the division. The archetypal fair division algorithm is divide and choose. The research in fair division can be seen as an extension of this procedure to various more complex settings. Description In game theory, fair division is the problem of dividing a set of resources among several people who have an Entitlement (fair division), entitlem ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fair Cake-cutting
Fair cake-cutting is a kind of fair division problem. The problem involves a ''heterogeneous'' resource, such as a cake with different toppings, that is assumed to be ''divisible'' – it is possible to cut arbitrarily small pieces of it without destroying their value. The resource has to be divided among several partners who have different preferences over different parts of the cake, i.e., some people prefer the chocolate toppings, some prefer the cherries, some just want as large a piece as possible. The division should be ''unanimously'' fair – each person should receive a piece believed to be a fair share. The "cake" is only a metaphor; procedures for fair cake-cutting can be used to divide various kinds of resources, such as land estates, advertisement space or broadcast time. The prototypical procedure for fair cake-cutting is divide and choose, which is mentioned in the book of Book of Genesis, Genesis to resolve Abraham and Lot's conflict. This procedure solves the fa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Proportional Cake-cutting
A proportional cake-cutting is a kind of fair cake-cutting. It is a division of a heterogeneous resource ("cake") that satisfies the proportionality criterion, namely, that every partner feels that his allocated share is worth at least 1/''n'' of the total. Two assumptions are usually made when proportionality is discussed: * The valuations of the partners are ''non-atomic'', i.e., there are no indivisible elements with positive value. * The valuations of the partners are ''additive'', i.e., when a piece is divided, the value of the piece is equal to the sum of its parts. Formal definitions The cake is denoted by C. There are n people. Each person i has a value function V_i. A partition of the cake, X_1\sqcup \cdots \sqcup X_n = C, is called ''proportional'' if:V_i(X_i) \ge V_i(C)/n for every person i \in \. Procedures For two people, divide and choose is the classic solution. One person divides the resource into what they believe are equal halves, and the other person ch ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Super-proportional Division
A strongly proportional division (sometimes called super-proportional division or super-fair division) is a kind of a fair division Fair division is the problem in game theory of dividing a set of resources among several people who have an Entitlement (fair division), entitlement to them so that each person receives their due share. The central tenet of fair division is that .... It is a division of resources among ''n'' partners, in which the value received by each partner is strictly more than his/her due share of 1/''n'' of the total value. Formally, in a strongly proportional division of a resource ''C'' among ''n'' partners, each partner ''i'', with value measure ''Vi'', receives a share ''Xi'' such thatV_i(X_i) > V_i(C)/n.Obviously, a strongly proportional division does not exist when all partners have the same value measure. The best condition that can ''always'' be guaranteed is V_i(X_i) \geq V_i(C)/n, which is the condition for a plain proportional division. However, one ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Individual Rationality
Rational choice modeling refers to the use of decision theory (the theory of rational choice) as a set of guidelines to help understand economic and social behavior. The theory tries to approximate, predict, or mathematically model human behavior by analyzing the behavior of a rational actor facing the same costs and benefits.Gary Browning, Abigail Halcli, Frank Webster (2000). ''Understanding Contemporary Society: Theories of the Present'', London: Sage Publications. Rational choice models are most closely associated with economics, where mathematical analysis of behavior is standard. However, they are widely used throughout the social sciences, and are commonly applied to cognitive science, criminology, political science, and sociology. Overview The basic premise of rational choice theory is that the decisions made by individual actors will collectively produce aggregate social behaviour. The theory also assumes that individuals have preferences out of available choice ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Allocative Efficiency
Allocative efficiency is a state of the economy in which production is aligned with the preferences of consumers and producers; in particular, the set of outputs is chosen so as to maximize the Economic surplus, social welfare of society. This is achieved if every produced good or service has a marginal benefit equal to or greater than the marginal cost of production. Description In economics, allocative efficiency entails production at the point on the production possibilities frontier that is optimal for society. In contract theory, allocative efficiency is achieved in a contract in which the skill demanded by the offering party and the skill of the agreeing party are the same. Resource allocation efficiency includes two aspects: # At the macro aspect, it is the allocation efficiency of social resources, which is achieved through the economic system arrangements of the entire society. # The micro aspect is the efficient use of resources, which can be understood as the produ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fair Cake-cutting
Fair cake-cutting is a kind of fair division problem. The problem involves a ''heterogeneous'' resource, such as a cake with different toppings, that is assumed to be ''divisible'' – it is possible to cut arbitrarily small pieces of it without destroying their value. The resource has to be divided among several partners who have different preferences over different parts of the cake, i.e., some people prefer the chocolate toppings, some prefer the cherries, some just want as large a piece as possible. The division should be ''unanimously'' fair – each person should receive a piece believed to be a fair share. The "cake" is only a metaphor; procedures for fair cake-cutting can be used to divide various kinds of resources, such as land estates, advertisement space or broadcast time. The prototypical procedure for fair cake-cutting is divide and choose, which is mentioned in the book of Book of Genesis, Genesis to resolve Abraham and Lot's conflict. This procedure solves the fa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Perfect Division
Consensus splitting, also called exact division, is a partition of a continuous resource ("cake") into some ''k'' pieces, such that each of ''n'' people with different tastes agree on the value of each of the pieces. For example, consider a cake which is half chocolate and half vanilla. Alice values only the chocolate and George values only the vanilla. The cake is divided into three pieces: one piece contains 20% of the chocolate and 20% of the vanilla, the second contains 50% of the chocolate and 50% of the vanilla, and the third contains the rest of the cake. This is an exact division (with ''k'' = 3 and ''n'' = 2), as both Alice and George value the three pieces as 20%, 50% and 30% respectively. Several common variants and special cases are known by different terms: * Consensus halving – the cake should be partitioned into two pieces (''k'' = 2), and all agents agree that the pieces have equal values. *Consensus 1/''k''-division, for any constant ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inequity Aversion
Inequity aversion (IA) is the preference for fairness and resistance to incidental inequalities. The social sciences that study inequity aversion include sociology, economics, psychology, anthropology, and ethology. Researchers on inequity aversion aim to explain behaviors that are not purely driven by self-interests but fairness considerations. In some literature, the terminology inequality aversion was used in the places of inequity aversion. The discourses in social studies argue that "inequality" pertains to the gap between the distribution of resources, while "inequity" pertains to the fundamental and institutional unfairness. Therefore, the choice between using inequity or inequality aversion may depend on the specific context. Human studies Inequity aversion research on humans mostly occurs in the discipline of economics though it is also studied in sociology. Research on inequity aversion began in 1978 when studies suggested that humans are sensitive to inequities in fav ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
