The Price of Fairness
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The Price of Fairness.pdf
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285.42 KB
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Author(s)
Farias, Vivek F.
Trichakis, Nikolaos
Bertsimas, Dimitris J
Date Issued
January 2011
Journal
Operations Research
Publisher
INFORMS
Citation
Bertsimas, D., V. F. Farias, and N. Trichakis. “The Price of Fairness.” Operations Research 59.1 (2011): 17-31.
Version
Author's final manuscript
Abstract
In this paper we study resource allocation problems that involve multiple self-interested parties or players and a central decision maker. We introduce and study the price of fairness, which is the relative system efficiency loss under a “fair” allocation assuming that a fully efficient allocation is one that maximizes the sum of player utilities. We focus on two well-accepted, axiomatically justified notions of fairness, viz., proportional fairness and max-min fairness. For these notions we provide a tight characterization of the price of fairness for a broad family of problems.
MIT Department
Massachusetts Institute of Technology. Operations Research Center
Sloan School of Management
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Creative Commons Attribution-Noncommercial-Share Alike 3.0
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DOI of Published Version
https://doi.org/10.1287/opre.1100.0865
