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,

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

A
$ 20.00
$ 40.00
$ 60.00
$ 120.00
$ 40.00

$
$
$
$
$

B
30.00
10.00
5.00
45.00
15.00

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

4 Calculate cash adjustment (each player's fair share

Winner
winning bids ($ amt)

item 1

item 2
item 3
$ 100.00 $ 30.00
Cash adjustment $ (60.00) $ (15.00)

minus the amount of player's winning bids)

5 Calculate cash bonus (the total of cash adjustments,

Cash bonus $ 18.22

$ 18.22

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)

Final settlement $ (41.78) $

3.22

$
$
$
$
$

C
16.00
25.00
20.00
61.00
20.33

$
$ 20.33

$ 18.22

$ 38.56

0.00 Total