final and paper advic

final and paper advic - Monday april 25th Win win fair...

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Monday april 25 th Win win fair seperations ( fair division precedures some specifically) Look up fair division Fair outcomes inc This is used (in many partnership agreements). If they break up one party can make an offer to buy out another ( if this 2 parties are in dispute). So party A says I will buy partner’s shares at price $ if B likes the price he can sell. If he does not like it Party B can buy Party A’s shares at the same price. Traditional Buy Sell Fair buy sell It seems game theoretic, very similar to I cut you chose Problem : neither party wants to initiate because it has to make itself indifferent btw being the buyer and the seller ( like I cut you chose) . Hence whether the initiator ends up the buyer or seller, it never profits – the profit all goes to the responder. The responder is in a better position where no one Solution Fair Buy – Sell : A and B independently put their offers on the table. Whoever’s offer is higher becomes the buyer, and the other becomes the seller. With the price the mean of the two offers. (so both do better than their offers 1. Sysmmetric ( both partners play identical roles) either could switch 2. Envy free – each partner thinks it does better than the other partner, so there is no ency 3. Equitable – both share equally in profit 4. Honesty inducing – only by being truthful do you preclude a loss 5. Stable – if they make the same offer, nneither has an incentive to deviate ( up or down) Adjusted Winner _ a practicable solution to in which several goods must be divided ( including bads) properties of adjusted Winner ( AW), THE CENTERPIECE OF THE wIN – wIN solution THAT IS RIGOROUSLY ANALYSED IN fAIR division ( both BOOKS BY BRAMS and tTaylor) and ok analysis in Brams, Mathematics and democracy
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3 key properties 1) efficiency ( no better outcome pareto)
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This note was uploaded on 05/04/2011 for the course POLITICS V53.0810 taught by Professor Stevenjbrams during the Spring '11 term at NYU.

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final and paper advic - Monday april 25th Win win fair...

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