The Price of Fairness
Author(s)Bertsimas, Dimitris J.; Farias, Vivek F.; Trichakis, Nikolaos
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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.
DepartmentMassachusetts Institute of Technology. Operations Research Center; Sloan School of Management
Bertsimas, D., V. F. Farias, and N. Trichakis. “The Price of Fairness.” Operations Research 59.1 (2011): 17-31.
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