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april18thclassnotes - Summary UP 1 UP is practivanle for...

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Summary UP 1. UP is practivanle for dividing items 2 plaers begin by ranking the items from best to worst 2. Starting from top choice work down the list, naming independently 1 at a time the items they most prefer of those that remain. At each stage, if A and B differ on their most 6. In either event both players get at least 50% unless A and B consider exactly the same bundles to be minimal ( recall the comparison of UP with the ultimatum game- supplemented by a rule that allows B to make a counterproposal that will be implemented-showing that this modified game in the qeuilibrium would be 50 cent 50 cents for one dollare. 11. id there are synergies, the an envy free split may be enhanced by the sequential nature of UP which allows the player to choose items that complement thoseuncontested items that they previously obtaine ( let us say ½ of a matching sofa set you may then change your later preferences) 14. Compared to disputes over divisible items like money or Land dispute The undercut procedure Proposing a fair division procedure of Indivisible items between two players Wherein each player ranks the items from best to worst -: 1) it is envy free 2) it may not be pareto optimal Ency free split is always possible as long as the players differ on a minimal bundle of items. A minimal bundle for a player is a subset that is worth at least 50% but, if reduced in any way ( in an ordinal sense), would be worth less than 50%. The most difficult case : Players rank a set of items EXACTLY THE SAME> FOR EXAMPLE SUPPOSE THERE ARE 1) FIVE ITEMS RANKED 12345 FOR A and B 2) A proposes that he takes 12 and b takes 345 ( the complimentary subset . B can accept or reject 3) If B undercuts, B it reduces A’s subset, B it reduces A’s subset to one it values slightly less ( ie.g. 13) and giver the compliment 245 to A
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