FAIR SHARES 2
Assignment 2: Fair Shares
There are three people; Abraham, Bobby, and Charlene. There exists an honest
assessment of the value of the dollar since all the players submit sealed bid simultaneously.
Dividing the bid of each player by the number of players gives the fair share.
Abraham’s bid= $12,000
Fare share= $12,000/3 = $4,000
Fare share= $6000/3 = $ 2,000
Fare share= $ 9,000/3 = $3,000
The collection goes to Abraham at $ 12,000. The remaining amount goes into the kitty
since $ 12,000 is greater than the fair share of $4,000.
The kitty amount is $ 12,000 - $ 4,000= $ 8,000
From the kitty’s $ 8,000, Charlene gets her fair share amounting to $ 3,000, and
Bobby gets his fair share amounting to $ 2,000.
Kitty remain with: $ 8,000 - $ 3,000 - $ 2,000= $ 3,000
Again the $ 3,000 is divided among the three players meaning that; Abraham paid $
12,000, he got a fair share of $4,000, $ 8,000 went into the kitty, and he remained
with $ 1000 after the other received their fair shares.
Charlene won nothing since her bid was low, had a fair share of $ 3000 and a surplus
of $ 1,000.
Bobby also won nothing because his fair share was received from the surplus left in
the kitty by Abraham; $ 8,000 and a left-over of $ 1,000.