On the Fair Division of a Random Object

Ann likes oranges much more than apples; Bob apples oranges. Tomorrow they will receive one fruit that be an orange or apple with equal probability. Giving half to each agent is fair for realization of the fruit. However, agreeing whatever appears go who it gives a higher expected utility and in average sense: expectation, prefers allocation division fruit; is, gets share. We turn this familiar observation into economic design problem: upon drawing random object (the fruit), we learn realized can compare mean agent’s distribution utilities; no other statistical information about available. fully characterize rules using only sparse most efficient possible way while giving everyone Although probability individual utilities arbitrary mostly unknown manager, these perform same range as best rule when manager has full access distribution. This paper was accepted by Ilia Tsetlin, behavioral economics decision analysis.