David Lucifer
Archon
Posts: 2642
Reputation: 8.94
Rate David Lucifer
Enlighten me.
  
|
 |
Fair allocation
« on: 2005-09-23 21:59:21 » |
 |
Say you are in a position to reward a group of people for a project well done. You would like to divide the reward between the participants in a fair way, proportional to their individual contributions, but you have no direct knowledge and have to rely on the information you get from interviewing the team. What do you ask them?
Give it some thought before reading on....
My solution is that you ask each member of the team how they would allocate the whole amount then use those proportions to allocate an amount equal to the whole divided by the size of the team. For example say there are 3 team members that will get $9000 divided between them. The first one (A) says that she would give B half ($4500) and split the remainder with C ($2250 each). B says that they should get equal amounts ($3000 each). C says B and C should split it all ($4500 each) and that A should get none cause she's a huge slacker. So given that information allocate $3000 according to each person's opinions (A: $750, $1500, $750; B: $1000, $1000, $1000; C: $0, $1500, $1500) and add them up (A gets $1750, B gets $4000, C gets $3250).
Can you think of a method that is more fair?
|
Author
Logged
