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.
The Price of Fairness
D. Bertsimas,V. Farias,Nikolaos Trichakis
Published 2011 in Operational Research
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- Publication year
2011
- Venue
Operational Research
- Publication date
Unknown publication date
- Fields of study
Computer Science, Economics
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