Excursions in Modern

Mathematics
Sixth Edition

Peter Tannenbaum

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 Chapter 3
Fair Division

The Mathematics of
Sharing

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 Fair Division
Outline/learning Objectives

l  State the fair-division problem and identify assumptions

used in developing solution methods.
l  Recognize the differences between continuous and
discrete fair-division problems.
l  Apply the divider-chooser, lone-divider, lone-chooser,
and last diminisher methods to continuous fair-division
problems
l  Apply the method of sealed bids and the method of
markers to a discrete fair-division problem

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 Fair Division

3.1 Fair Division Games

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 Fair Division- Underlying Elements

l  The goods (or booty).

This is the informal name we will give to the
item(s) being divided and is denoted by S.
l  The players.
They are the players in the game.
l  The value systems.
Each player has an internalized value system.

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 Fair Division
Assumptions

l  Rationality l  Privacy

l  Cooperation l  Symmetry

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 Fair Division

Fair Share
Suppose that s denotes a share of the booty S
and P is one of the players in a fair division
game with N players. We will say that S is a
fair share to player P if S is worth at least 1/
Nth of the total value of S in the opinion of P.

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 Fair Division-Division Methods

l  Continuous
The set S is divisible.
l  Discrete
The set S is indivisible.
l  Mixed
Some are continuous and some discrete.

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 Fair Division

3.2 Two Players: The

Divider-Chooser Method

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 The Divider-Chooser Method

l  The best known of all continuous fair-

division methods.
l  This method can be used anytime it
involves two players and a continuous
set S.
l  Also known as “you cut– I choose”
method.
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 The Divider-Chooser Method
Two Players: The Divider-Chooser Method

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 The Divider-Chooser Method

Two Players: The Divider-Chooser Method

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 Fair Division

3.3 The Lone-

Divider Method

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 Lone-Divider Method

–  The Lone-Divider Method for Three Players

l  Preliminaries. One of the three players will be
the divider; the other two players will be
choosers. We’ll call the divider D and the
choosers C1 and C2 . N = 3

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 Lone-Divider Method

–  The Lone-Divider Method for Three Players

l  Step 1 ( Division). The divider D divides the
cake into three pieces (s1 , s2 and s3 .) D will
get one of these pieces, but at this point does
not know which one. (Not knowing which of
the pieces will be his share is critical– it forces
D to divide the cake equally)

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 Lone-Divider Method

–  The Lone-Divider Method for Three Players

l  Step 2 ( Bidding). C1 declares (usually by
writing on a slip of paper) which of the three
pieces are fair shares to her. Independently,
C2 does the same. These are the chooser’ bid
lists. A choosers bid list should include every
piece that he or she values to be a fair share.

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 Lone-Divider Method

–  The Lone-Divider Method for Three Players

l  Step 3 ( Distribution). Who gets the piece?
The answer depends on the bid lists. For
convenience, we will separate the pieces into
two groups: chosen pieces (let’s call them C-
pieces), and unwanted pieces (let’s call them
U- pieces).
l  Note: Swapping pieces after the distribution is
perfectly fine.
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 Lone-Divider Method

The Lone-Divider Method for Three Players

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 Lone-Divider Method

S1 S2 S3
*Dale 33.3% 33.3% 33.3%
Cindy 35% 10% 55%
Cher 40% 25% 35%

Dale is the divider.

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 Lone-Divider Method

S1 S2 S3
*Dale 33.3% 33.3% 33.3%
Cindy 30% 40% 30%
Cher 60% 15% 25%

Dale is the divider.

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 Lone-Divider Method

S1 S2 S3
*Dale 33.3% 33.3% 33.3%
Cindy 20% 30% 50%
Cher 10% 20% 70%

Dale is the divider.

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 Lone-Divider Method

–  The Lone-Divider Method for More Than Three

Players
l  Preliminaries. One of the players will be the
divider D; and the remaining N – 1 players are
going to be all choosers. As always, it’s better
to be a chooser than a divider.

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 Lone-Divider Method

–  The Lone-Divider Method for More Than Three

Players
l  Step 1 ( Division). The divider D divides the
set S into N shares S1, S2, S3, … SN. D is
guaranteed of getting one of these shares, but
doesn’t know which one.

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 Lone-Divider Method

–  The Lone-Divider Method for More Than Three

Players
l  Step 2 ( Bidding). Each of the N - 1
choosers independently submits a bid list
consisting of every share that he or she
considers to be a fair share (1/Nth or more of
S).

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 Lone-Divider Method

–  The Lone-Divider Method for More Than Three

Players
l  Step 3 ( Distribution). The bid lists are
opened.

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 Lone-Divider Method

S1 S2 S3 S4
*Demi 25% 25% 25% 25%
Chan 30% 20% 35% 15%
Chloe 20% 20% 40% 20%
Chris 25% 20% 20% 35%

Demi is the divider.

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 Lone-Divider Method

S1 S2 S3 S4
*Demi 25% 25% 25% 25%
Chan 20% 20% 20% 40%
Chloe 15% 35% 30% 20%
Chris 22% 23% 20% 35%

Demi is the divider.

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 Fair Division

3.4 The Lone-

Chooser Method

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 The Lone-Chooser Method

–  The Lone-Chooser Method for Three Players

l  Preliminaries. We have one chooser and two
dividers. Let’s call the chooser C and the
dividers D1 and D2 . As usual, we decide who
is what by a random draw.

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 The Lone-Chooser Method

–  The Lone-Chooser Method for Three Players

l  Step 1 ( Division). D1 and D2 divide S
between themselves into two fair shares.
To do this, they use the divider-chooser
method. Let’s say that D1 ends with S1
and D2 ends with S2 .

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 The Lone-Chooser Method
–  The Lone-Chooser Method for Three
Players
l  Step 2 (Subdivision). Each divider
divides his or her share into three
subshares. Thus D1 divides S1 into three
subshares, which we will call S1a, S1b and
S1c . Likewise, D2 divides S2 into three
subshares, which we will call S2a,
S2b and S2c .

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 The Lone-Chooser Method
–  The Lone-Chooser Method for Three
Players
l  Step 3 (Selection). The chooser C
now selects one of D1 ‘s three
subshares and one of D2 ‘s three
subshares. These two subshares
make up C’s final share. D1 then
keeps the remaining two subshares
from S1 , and D2 keeps the remaining
two subshares from S2 .

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 Fair Division

3.5 The Last-

Diminisher Method

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 The Last-Diminisher Method

l  Preliminaries. Before the

game starts the players are
randomly assigned an order
of play. The game is played
in rounds, and at the end of
the each round there is one
fewer player and a smaller S
to be divided.

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 The Last-Diminisher Method

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 The Last-Diminisher Method

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 The Last-Diminisher Method

l  Round 1. P1 kicks the off by “cutting” for

herself a 1/Nth share of S. This will be the
current C-piece, and P1 is its claimant. P1 does
not know whether or not she will end up with
this share.
P2 comes next and has a choice: pass or
diminish

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 The Last-Diminisher Method

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 The Last-Diminisher Method

l  (Round 1 continued). P3 comes next and has

the same opportunity as P2 : Pass or diminish
the current C-piece.
The round continues this way, each player in
turn having an opportunity to pass or diminish.

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 The Last-Diminisher Method

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 The Last-Diminisher Method

l  Round 2. The R- piece becomes the new S

and a new version of the game is played with
the new S and the N – 1 remaining players. At
the end of this round, the last diminisher gets to
keep the current C-piece and is out of the
game.

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 The Last-Diminisher Method

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 The Last-Diminisher Method

l  Round 3, 4, etc. Repeat the process, each

time with one fewer player and a smaller S,
until there are just two players left. At this
point, divide the remaining piece between the
final two players using the divider-chooser
method.

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 The Last-Diminisher Method

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 The Last-Diminisher Method

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 The Last-Diminisher Method

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 The Last-Diminisher Method

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 Fair Division

3.6 The Method of

Sealed Bids

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 The Method of Sealed Bids

l  Step 1 (Bidding). Each of the players makes a

bid (in dollars) for each of the items in the
estate, giving his or her honest assessment of
the actual value of each item. Each player
submits their own bid in a sealed envelope.

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 The Method of Sealed Bids

l  Step 2 (Allocation). Each item will go to the

highest bidder for that item. (If there is a tie,
the tie can be broken with a coin flip.)

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 The Method of Sealed Bids

l  Step 3 (First Settlement). Depending on what

items (if any) a player gets in Step 2, he or she
will owe money to or be owed money by the
estate. To determine how much a player owes
or is owed, we first calculate each player’s fair-
dollar share of the estate.

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 The Method of Sealed Bids

l  Step 4 (Division of the Surplus). The surplus

is common money that belongs to the estate,
and thus to be divided equally among the
players.

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 The Method of Sealed Bids

l  Step 5 (Final Settlement). The final settlement

is obtained by adding the surplus money to the
first settlement obtained in Step 3.

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 Fair Division

3.7 The Method of

Markers

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 The Method of Markers

The  Method  of  Markers

•  No  money  up  front.  

•  Must  have  more  items  
than  players.  
•  Items  must  be  close  in  
value.  

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 The Method of Markers

l  Preliminaries. The items are arranged

randomly into an array.

Array – a set of numbers or objects that follow a specific

pattern. Arrays are usually orderly arranged in rows,
columns or a matrix.

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 The Method of Markers

l  Step 1 (Bidding). Each player independently

divides the array into N segments by placing
markers along the array.

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 The Method of Markers

l  Step 2 (Allocations). Scan the array from left

to right until the first first marker is located.
The player owning that marker goes first, and
gets the first segment in his bid. That players
markers are removed, and we continue
scanning left to right, looking for the first
second marker.

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 The Method of Markers

The Method of Markers - Step 2

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 The Method of Markers

l  Step 2 (Allocations continued). The player

owning that marker goes second and gets the
second segment in her bid. Continue this
process, assigning to each player in turn one of
the segments in her bid. The last player gets
the last segment in her bid.

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 The Method of Markers

The Method of Markers - Step 2

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 The Method of Markers

The Method of Markers - Step 2

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 The Method of Markers

The Method of Markers - Step 2

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 The Method of Markers

l  Step 3 (Dividing Leftovers). The leftover

items can be divided among the players by
some form of lottery, and, in the rare case that
there are many more leftover items than
players, the method of markers could be used
again.

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 The Method of Markers

The Method of Markers - Step 3

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 Fair Division
Conclusion

l  Fair Division from a Mathematical

perspective
l  Developed different methods for solving
fair-division problems
l  Classified fair-division problems into
continuous and discrete
l  Overview of how to get humans to share in
a reasonable and fair way.

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