Fair Division Worksheet Your rich aunt has left you and your siblings her estate: >

2001 Beetle TDI > pre-Columbian statuette (appraised $20,000) > 10% stockholding in family business with earnings = $50,000/year You agree to divide the estate according to the following procedure: 1 Individual bids. Each player bids for items, specifying a $ bid for each item 2 Calculate individual valuation of estate. Next calculate each player's total bids and "fair value" (that is, individual valuation of share of estate) 3 Identify the winning bids (break ties by flipping coin or auctioning item); then enter $ amount of winning bids

item 1 item 2 item 3 Total $ Fair share (1/3 total)

A $ 20.00 $ 40.00 $ 60.00 $ 120.00 $ 40.00

Winner winning bids ($ amt)

4 Calculate cash adjustment (each player's fair share minus the amount of player's winning bids) 5 Calculate cash bonus (the total of cash adjustments, stated as positive number, divided by # players) 6 Final settlement. Each player pays (or is paid) cash adjustment plus cash bonus (This should total zero)

item 2 item 3 $ 100.00 Cash adjustment $ (60.00)

Cash bonus $ 18.22

Final settlement $ (41.78)

$ $ $ $ $

B 30.00 10.00 5.00 45.00 15.00

$ $ $ $ $

C 16.00 25.00 20.00 61.00 20.33

item 1

$ 30.00 $ $ (15.00) $ 20.33

$ 18.22

$ 18.22

3.22

$ 38.56

Total