1. DM.7

2.  This procedure is for handling property settlements in a divorce or in an inheritance involving only two heirs.  Theorem: For two parties, the adjusted winner procedure produces an allocation based on each players assignment of 100 points over the items to be divided.

3. 1. The allocation is equitable: this means that both players receive the same number of points. 2. The allocation is Envy – free: this means that neither player would be happier with what the others received. 3. The allocation Pareto – optimal: this means that no other allocation, arrived at by any means, can make one party better off without making the other party worse off.

4. 1. Assign each person each item according to who bids the highest. 2. Total circled 3. To slide the points you have to take the one they want the least. 4. Can’t slide anymore because you do not want to change who has the most points. 5. Then decide which item they want to share because according to adjusted winner procedure they have to end up being equal.

5. 6. To determine the Item that will be shared, make a fraction. Person giving up the Item will be the denominator(bottom). The largest fraction is the item that will be shared because that mean the person giving the item has less interest in that item than the other items he has. 7. Set up the equation. It does not matter who is assigned (X) and who is assigned (1 – X). 8. Solve for X 9. X = and 1 – X = 10. List what each one received.

6. Point Allocation Martial AssetDonaldIvana Connecticut Estate1038 Palm Beach Mansion 4020 Trump Plaza Apartment 1030 Trump Tower Triplex3810 Cash and Jewelry22

7. ObjectCalvinHobbes Cannon105 Anchor1020 Unopened chest1520 Doubloon1114 Figure head2030 Sword156 Cannon ball51 Wooden leg21 Flag102 Crow’s nest21