Computer-based method for the fair division of ownership of goods

• US 5,983,205 A
• Filed: 04/05/1999
• Issued: 11/09/1999
• Est. Priority Date: 07/26/1996
• Status: Expired due to Term

• Current Assignee: New York University
• Original Assignee: New York University
• Inventors: Brams, Steven J., Taylor, Alan D.
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): Patel, Jagdish
• Application Number:
  US09/286,031
• Time in Patent Office: 218 Days
• Field of Search: 705/1, 705/10, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

Two methods, "Adjusted Winner (AW)" and "Proportional Allocation (PA)," are provided for the fair division of a collection of items, which could be either real goods or issues in a dispute, between two claimants (parties). The methods can be implemented as a digital computer software program. In both methods, the parties are each given 100 points and then bid on each item using their points. Under the AW method, which is applicable to indivisible items, each party is initially allocated those goods, or wins on those issues, for which it bids the higher number of points. Then the goods or issues are reassigned, or resolved differently, to achieve equality of points based on the quotients of the parties'"'"' bids. Under PA, each good or issue is divided according to a ratio based on both parties'"'"' bids for that good or issue.

Claims

1. A method involving the use of a software program executed on a digital computer having computer memory and a display for the fair division of ownership of a collection of goods between two parties;

the method, including the steps, in sequence, of;

(a) allocating to each party an equal number of points;

(b) having each party allocate that party'"'"'s points to each of the goods, based on that party'"'"'s relative valuation of each of the goods;

(c) recording in computer memory each party'"'"'s allocation of points;

(d) initially, having the computer calculate an assignment to each party of ownership of each good for which that party allocated more points than the other party; and

(e) having the computer calculate and then assign ownership of goods to achieve equitability of points by ownership of goods, based on the ratio of the parties'"'"' allocations of points for each good, in sequence, based on increasing quotients of the ratios;

(f) displaying the reassignment ownership of the goods of (e) on the computer display; and

(g) having a user assign and deliver all but one of the goods, and proportional shares of that one good, according to the reassignment of the goods of (e).

2. A method as in claim 1, and having, in (b), each party allocate his or her points without disclosure to any other party until after completion of point allocation by all the parties.

3. A method as in claim 1 and in (b) having each party submits sealed bids to allocate his or her points.

4. A method as in claim 1 and having in (e) each party reassign ownership of goods from a party that receives goods valued at more points to the other party by first reassigning ownership of goods for which the parties have allocated the same points.

5. A digital computer-based method, using a digital computer having a display, for the fair division of ownership of a set of non-divisible goods between two parties, the method including the steps, in sequence, of:

(a) allocating to each party an equal number of points, the points having no fixed monetary or economic significance;

(b) having each party bid on each good in a sealed bid to a computer operator according to his or her valuation of the good;

(c) in the computer, recording the bids and calculating which party initially should be assigned ownership of each good by having bid more points for that good, and summing the points each party receives;

(d) determining the goods to be reassigned ownership to obtain equality of points, on the basis of;

(i) reassigning the ownership of goods for which the bids are equal to a party that has initially received fewer points in (c), and then

(ii) reassigning ownership of goods in the sequence of increasing quotients of the parties'"'"' bids;

(e) displaying the reassignment of (d) on the computer display; and

(f) having a computer user assign and deliver all of the goods according to the reassignment of ownership of (d).

6. A method, as in claim 5, and, in (b), having each party bid at least 1 point for each good.

7. A method involving the use of a software program executed on a digital computer having computer memory and a display, for the fair division of a collection of goods between the two parties A and B, the method including, in sequence, the following steps:

(a) A and B are given the same total number of points to allocate among k goods;

(b) A and B allocate one or more points to each good, without informing the other party of their allocations, based on each party'"'"'s relative valuation of that good, so that these allocations sum to the total number of points, the points having no fixed monetary or economic significance;

(c) the points assignments of A and B to each good are recorded in computer memory;

(d) the computer makes an assignment of ownership of each good either to A or B, depending on which party allocated more points to that good;

if the parties allocated an equal number of points to a good, it is assigned to A;

(e) the computer calculates the total number of points that A receives and that B receives, based on the assignments in (d);

(f) if these totals are equal, A and B receive ownership of the good each was assigned;

(g) the computer displays ownership of each good;

(h) if these totals are not equal, the ownership of the goods is reassigned on the basis of;

(I) first reassigning the ownership of goods for which the point allocations are equal to the party that received fewer points in (d); and

(II) then reassigning ownership of goods in the sequence of increasing quotients increasing quotients of the parties'"'"' point allocations, until that party that had the total of fewer points in (e) receives the same number of points or more points than the party that had more points initially;

(i) if the party that had fewer points initially has the same number after reassignments according to (g), the computer displays ownership of each good;

(j) if the party that had fewer points initially has more points after reassignments according to (g), the computer equalizes the point assignments according to the equitability adjustment of (h);

(k) the computer displays ownership, and portions of ownership, of each good; and

(l) a computer user assigns and delivers ownership of all goods, except possibly the one on which there is an equitability adjustment, and proportional ownership shares of the good on which there is an equitability adjustment.

8. A method involving the use of a software program executed on a digital computer memory and a display, for the fair division of a collection of goods between two parties A and B, the method including, in sequence, the following steps:

(a) A and B are given the same total number of points to allocate among k goods;

(b) A and B, without informing the other party of their allocations, allocate one or more points to each good, based on each party'"'"'s relative valuation of that good, so that these allocations sum to the total number of points, the points having no fixed monetary or economic significance;

(c) the points assignments of A and B to each good are recorded in the computer memory;

(d) the computer calculates the portion of ownership of each good to be assigned to A and to B on the basis of the ratio of their point allocations;

(e) the computer displays the portions of ownership of each good; and

(f) a computer user assigns and delivers the portions of ownership of each good to A and B according to the assignments of (d).