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Dividing Profits Three Ways: Impartiality vs. Consensuality

  • James W. Boudreau

    (The University of Texas-Pan American)

  • Vicki Knoblauch

    (University of Connecticut)

A rule for three-way division of profits based on peer evaluation reports is impartial if the calculation of each partner’s share ignores her report, and is consensual if it respects evaluations when the three partners’ reports are in agreement. We give an approximate solution to the problem of finding a three-way impartial division rule of minimal average deviation from consensuality. We also use a calculus of variations technique to give an exact solution to a simple version of the problem.

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File URL: http://web2.uconn.edu/economics/working/2010-15.pdf
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Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2010-15.

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Length: 21 pages
Date of creation: Apr 2010
Date of revision:
Handle: RePEc:uct:uconnp:2010-15
Contact details of provider: Postal: University of Connecticut 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063
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Fax: (860) 486-4463
Web page: http://www.econ.uconn.edu/
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  1. 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.
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