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Decreasing Demand procedure

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The Decreasing Demand Procedure is a procedure for fair item assignment. It yields a Pareto-efficient division that maximizes the lowest rank of an agent. It was developed by Dorothea Herreiner and Clemens Puppe.[1]

Description

Each agent is supposed to have a linear ranking on all bundles of items.

The agents are queried in a round-robin fashion: each agent, in turn, reports his next bundle in the ranking, going from the best to the worst.

After each report, the procedure checks whether it is possible to construct a complete partition of the items based on the reports made so far. If it is possible, then the procedure stops and returns one such partition. If there is more than one partition, then a Pareto-efficient one is returned.

  1. ^ Herreiner, Dorothea; Puppe, Clemens (2014). "A simple procedure for finding equitable allocations of indivisible goods". Social Choice and Welfare. 19 (2): 415. doi:10.1007/s003550100119.
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