Fair Profit Division

Ranojoy Basu () and Conan Mukherjee ()
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Ranojoy Basu: Indian Institute of Management Udaipur
Conan Mukherjee: Indian Institute of Management Calcutta

Journal of Optimization Theory and Applications, 2025, vol. 204, issue 1, No 5, 18 pages

Abstract: Abstract We present a cooperative game theoretic approach to fair division of profit generated by overlapping teams of workers. We argue that unlike the standard notion of efficiency, individual shares must exhaust the sum of worths of all coalitions in this setting. We show that utilising the Shapley value through a suitably constructed characteristic function to account for this feature is unlikely to be practically acceptable. Instead, we directly use this no-wastage condition (we call it ‘extended efficiency’) to completely characterize two solutions of the fair division problem that satisfy monotonicity and symmetry.

Keywords: Fair division; Extended efficiency; Axiomatic characterizations; Coalitional monotonicity; Marginal monotonicity; Symmetry; 91A12; 91B32; 91A70 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10957-024-02601-4

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