Fairness and Welfare Through Redistribution When Utility Is Transferable

We join the goals of two giant and related fields research in group decision-making that have historically had little contact: fair division, efficient mechanism design with monetary payments. To do this we adopt standard paradigm where utility is assumed to be quasilinear thus transferable across agents. generalize traditional binary criteria envy-freeness, proportionality, efficiency (welfare) measures degree range between 0 1. demonstrate canonical division settings under any allocatively-efficient worst-case welfare rate disproportionality 1; other words, results are as bad possible. This strongly motivates an average-case analysis. then set goal identification a achieves high welfare, low envy, expectation spectrum settings. establish VCG not satisfactory candidate, but redistribution [Bailey, 1997; Cavallo, 2006] is.