The Adjusted WinnerDM.7

Adjusted Winner Divorce Procedure This procedure is for handling

property settlements in a divorce or in an inheritance involving only two heirs.

Theorem: For two parties, the adjusted winner procedure produces an allocation based on each players assignment of 100 points over the items to be divided.

Properties of adjusted winner1. The allocation is equitable: this means that

both players receive the same number of points.

2. The allocation is Envy – free: this means that neither player would be happier with what the others received.

3. The allocation Pareto – optimal: this means that no other allocation, arrived at by any means, can make one party better off without making the other party worse off.

Process for Adjusted Winner1. Assign each person each item according to

who bids the highest.2. Total circled3. To slide the points you have to take the one

they want the least.4. Can’t slide anymore because you do not

want to change who has the most points.5. Then decide which item they want to share

because according to adjusted winner procedure they have to end up being equal.

6. To determine the Item that will be shared, make a fraction. Person giving up the Item will be the denominator(bottom). The largest fraction is the item that will be shared because that mean the person giving the item has less interest in that item than the other items he has.

7. Set up the equation. It does not matter who is assigned (X) and who is assigned (1 – X).

8. Solve for X9. X = and 1 – X =10.List what each one received.

Trump DivorcePoint

AllocationMartial Asset Donald IvanaConnecticut

Estate10 38

Palm Beach Mansion

40 20

Trump Plaza Apartment

10 30

Trump Tower Triplex

38 10

Cash and Jewelry

2 2

Supposed Calvin and Hobbes discovered a sunken pirate – ship and must divide their loot.

Object Calvin HobbesCannon 10 5Anchor 10 20

Unopened chest 15 20Doubloon 11 14

Figure head 20 30Sword 15 6

Cannon ball 5 1Wooden leg 2 1

Flag 10 2Crow’s nest 2 1