Dividing profits three ways: Exactness vs. consensuality
A rule for 3-way division of profits based on peer evaluation reports is impartial if the calculation of each partner's share ignores her report, exact if it never allocates more or less than the profit to be shared, and consensual if it respects evaluations when the partners' reports are in agreement. We use a calculus of variations technique to solve exactly a simple version of the problem of finding a 3-way exact, impartial division function of minimal average deviation from consensuality. We also give approximate solutions to three versions of the problem using a numerical analysis technique that is widely applicable.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- T. Tideman & Florenz Plassmann, 2008. "Paying the partners," Public Choice, Springer, vol. 136(1), pages 19-37, July.
- Knoblauch, Vicki, 2009.
"Three-agent peer evaluation,"
Elsevier, vol. 105(3), pages 312-314, December.
- Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
- de Clippel, Geoffroy & Moulin, Herve & Tideman, Nicolaus, 2008. "Impartial division of a dollar," Journal of Economic Theory, Elsevier, vol. 139(1), pages 176-191, March.
When requesting a correction, please mention this item's handle: RePEc:eee:matsoc:v:62:y:2011:i:2:p:79-86. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.