The Price of Fairness

2011/02/01 by Dimitris Bertsimas, Vivek F. Farias, Nikolaos Trichakis · 16 citations
Economics, Econometrics and Finance · Decision Sciences · #Game Theory and Voting Systems #Auction Theory and Applications #Game Theory and Applications

paper · doi:10.1287/opre.1100.0865

Abstract

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.

Citations

• The Bargaining Problem
• How bad is selfish routing?

Cited by

• COVAriance-Induced Fairness Gap Penalty for Subgroup-Fair Clustering
• Multi-resource Fair Allocation with Bounded Number of Tasks in Cloud Computing Systems
• Intervention Strategies for Fairness and Efficiency at Autonomous Single-Intersection Traffic Flows
• A Fair OR-ML Framework for Resource Substitution in Large-Scale Networks
• Envy-freeness up to any item with high Nash welfare: The virtue of\n donating items
• A Decomposition of the Max-min Fair Curriculum-based Course Timetabling Problem
• A Family of Convex Models to Achieve Fairness through Dispersion Control
• A Multi-echelon Demand-driven Supply Chain Model for Proactive Optimal Control of Epidemics: Insights from a COVID-19 Study
• Mechanism design and equilibrium analysis of smart contract mediated resource allocation
• Dynamic Inverse Optimization under Drift and Shocks: Theory, Regret Bounds, and Applications
• Virtual Agent Economies
• Audits Under Resource, Data, and Access Constraints: Scaling Laws For Less Discriminatory Alternatives
• Is Noisy Data a Blessing in Disguise? A Distributionally Robust Optimization Perspective
• Sequential Fair Allocation With Replenishments: A Little Envy Goes An Exponentially Long Way
• Robust Data-Driven Quasiconcave Optimization
• The Price of EF1 for Few Agents with Additive Ternary Valuations

Related

• Tight Bounds for The Price of Fairness
• Fair Allocation Without Trade
• A Mood Value for Fair Resource Allocations
• Lower Bounds for the Fair Resource Allocation Problem
• The price of fairness for a small number of indivisible items