, Volume 50, Issue 4, pp 589-610
Date: 08 Sep 2011

The Efficiency of Fair Division

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Abstract

In this paper we study the impact of fairness on the efficiency of allocations. We consider three different notions of fairness, namely proportionality, envy-freeness, and equitability for allocations of divisible and indivisible goods and chores. We present a series of results on the price of fairness under the three different notions that quantify the efficiency loss in fair allocations compared to optimal ones. Most of our bounds are either exact or tight within constant factors. Our study is of an optimistic nature and aims to identify the potential of fairness in allocations.

A preliminary version of this paper appeared in Proceedings of the 5th International Workshop on Internet and Network Economics (WINE ’09), LNCS 5929, Springer, pp. 475–482, 2009.