9860

The Adjusted Winner Procedure

The adjusted winner procedure is a method of fair division for settling disputes between two parties when there are several items (or issues) involved. Each party independently allocates a total of 100 points to the items involved, with the allocation reflecting the relative importance of those items to that party. The adjusted winner procedure is then used to determine which party gets which items, and whether or not there must be a compromise on one of the issues. This Demonstration lets you allocate the points for both parties and illustrates the division procedure step-by-step. Several fixed examples of allocations are included for quick use.

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DETAILS

In the adjusted winner procedure, each item is initially given to the party who assigned it more points. In the event of a tie, the item is initially given to the party with the fewer total points from the items that were not tied. (See snapshot 4, where items 3 and 4 are given to B, who had 96 points to A's 97.) Items are then transferred from the party with more points to the party with fewer points in order of increasing point ratio: , where is the number of points assigned to the item by the party with more points initially and is the number of points assigned to the item by the party with fewer points initially. Items are transferred until each party has the same number of points. In the typical scenario, there will need to be a compromise on one item.
Reference
[1] COMAP, For All Practical Purposes, New York: W. H. Freeman and Company, 2009.
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