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Methods of distributing compensation among several people in case of a partially divisible benefit

https://doi.org/10.26425/1816-4277-2025-10-200-207

Abstract

The issue of distributing a resource or benefit composed of a set of indivisible components among multiple beneficiaries has been studied. Two types of conditionally “fair” valuations of indivisible good such as expert appraisal and market pricing have been considered. Each of them is based on vectors of monetary estimates provided by potential beneficiaries for indivisible goods comprising the resource to be distributed. The distribution is carried out by assigning each indivisible good to the beneficiary who values it the highest, who must then pay monetary compensation to the other beneficiaries. For each valuation method, uniform and proportional schemes for distributing compensation payments among participants have been studied without considering the envy concept. In the expert determination of the benefit price, it has been shown that the uniform distribution of compensation is perceived by the division participants as unfair, while the proportional one as acceptable. In the market determination of the benefit price, it has been shown that the proportional distribution of compensation is perceived by the division participants as unfair, while the uniform one as acceptable. For each acceptable compensation scheme, the mean values and variances of deviations of these compensations from the minimum payout amounts desired by the beneficiaries have been calculated. Conclusions have been drawn regarding the potential dissatisfaction of beneficiaries arising from the chosen method of division implemented.

About the Author

V. V. Egorov
State University of Management
Russian Federation

Vladislav V. Egorov - Cand. Sci. (Phys.-Math.), Assoc. Prof. at the Mathematical  Methods in Economics and Management Department 

Moscow 



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Review

For citations:


Egorov V.V. Methods of distributing compensation among several people in case of a partially divisible benefit. Vestnik Universiteta. 2025;1(10):200-207. (In Russ.) https://doi.org/10.26425/1816-4277-2025-10-200-207

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ISSN 1816-4277 (Print)
ISSN 2686-8415 (Online)