dolution

dolution.

Ann and Ben are getting divorced and want to determine how to divide their joint property: retirement account, home, summer cottage, investments, and miscellaneous assets. To begin, Ann and Ben are told to allocate 100 total points to the assets. Their allocation is as shown in Table 69.

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Assuming that all assets are divisible (that is, a fraction of each asset may be given to each person), how should the assets be allocated? Two criteria should govern the asset allocation:

Criteria 1 Each person should end up with the same number of points. This prevents Ann from envying Ben and Ben from envying Ann.

Criteria 2 The total number of points received by Ann and Ben should be maximized.

If assets could not be split between people, what problem arises?

dolution

 
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