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Scalable Fair Division for 'At Most One' Preferences

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  • Christian Kroer
  • Alexander Peysakhovich

Abstract

Allocating multiple scarce items across a set of individuals is an important practical problem. In the case of divisible goods and additive preferences a convex program can be used to find the solution that maximizes Nash welfare (MNW). The MNW solution is equivalent to finding the equilibrium of a market economy (aka. the competitive equilibrium from equal incomes, CEEI) and thus has good properties such as Pareto optimality, envy-freeness, and incentive compatibility in the large. Unfortunately, this equivalence (and nice properties) breaks down for general preference classes. Motivated by real world problems such as course allocation and recommender systems we study the case of additive `at most one' (AMO) preferences - individuals want at most 1 of each item and lotteries are allowed. We show that in this case the MNW solution is still a convex program and importantly is a CEEI solution when the instance gets large but has a `low rank' structure. Thus a polynomial time algorithm can be used to scale CEEI (which is in general PPAD-hard) for AMO preferences. We examine whether the properties guaranteed in the limit hold approximately in finite samples using several real datasets.

Suggested Citation

  • Christian Kroer & Alexander Peysakhovich, 2019. "Scalable Fair Division for 'At Most One' Preferences," Papers 1909.10925, arXiv.org.
  • Handle: RePEc:arx:papers:1909.10925
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    1. Eric Budish & Estelle Cantillon, 2012. "The Multi-unit Assignment Problem: Theory and Evidence from Course Allocation at Harvard," American Economic Review, American Economic Association, vol. 102(5), pages 2237-2271, August.
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    5. Eric Budish, 2011. "The Combinatorial Assignment Problem: Approximate Competitive Equilibrium from Equal Incomes," Journal of Political Economy, University of Chicago Press, vol. 119(6), pages 1061-1103.
    6. Ioannis Caragiannis & David Kurokawa & Herve Moulin & Ariel D. Procaccia & Nisarg Shah & Junxing Wang, 2016. "The Unreasonable Fairness of Maximum Nash Welfare," Working Papers 2016_08, Business School - Economics, University of Glasgow.
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    Cited by:

    1. Yuan Gao & Christian Kroer & Alex Peysakhovich, 2021. "Online Market Equilibrium with Application to Fair Division," Papers 2103.12936, arXiv.org, revised Oct 2021.
    2. Yuan Gao & Christian Kroer, 2020. "Infinite-Dimensional Fisher Markets and Tractable Fair Division," Papers 2010.03025, arXiv.org, revised Apr 2021.

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