Fair Division under Risk and Uncertainty - Policy Applications.

Theproblem of fairly allocating resources pertains to various realms of social issues ranging from taxation and bankruptcy to climate change and from kidney exchange and school admissions to dividing estates amongst claimants after death or divorce. The solution to such problems requires the direct use of the notion of equity and fairness by precisely defining these concepts as axioms and examining critically the effect of the use of these axioms. Naturally, the fair division method depends on the specific context of the problems. Distribution of food supplies under emergency calls for egalitarian divisions, whereas the liquidation value of a bankrupt firm among its creditors is executed via proportionality principle. Furthermore, many real-life allocation problems require distribution before uncertainty is realized. The focus of the proposed research will be on the fair division under uncertainty and its various policy applications.