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Fair Profit Division

Author

Listed:
  • Ranojoy Basu

    (Indian Institute of Management Udaipur)

  • Conan Mukherjee

    (Indian Institute of Management Calcutta)

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.

Suggested Citation

  • Ranojoy Basu & Conan Mukherjee, 2025. "Fair Profit Division," Journal of Optimization Theory and Applications, Springer, vol. 204(1), pages 1-18, January.
    • Handle: RePEc:spr:joptap:v:204:y:2025:i:1:d:10.1007_s10957-024-02601-4
    DOI: 10.1007/s10957-024-02601-4
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    References listed on IDEAS

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