Question

Sadie and Ted must divide a stove, a hut, a chest, a nightstand, an igloo, and a trashcan. They assign points to each item as follows:

Sadie: stove 20, hut 10, chest 24, nightstand 16, igloo 15, trashcan 15.

Ted: stove 15, hut 35, chest 15, nightstand 10, igloo 15, trashcan 10.

Which of the following splits is efficient?

a. Ted gets the hut; Sadie gets the rest.
b. Sadie gets the hut; Ted gets the rest.
c. Sadie gets the hut and the trashcan; Ted gets the rest.
d. None of these splits are efficient.
e. Ted gets the trashcan; Sadie gets the rest.

Answer 1

Answer:

a. Ted gets the hut; Sadie gets the rest.

Explanation:

Since Ted placed a much more higher priority on the hut by assigning it 35 points more than all other items, and Sadie placed a very low priority on the hut by assigning it 10 points when compared to all other items, it shows Ted is ready to let go of other items just to have the hut, and Sadie is ready to let go of the hut to have the other item. Hence, the "Ted gets the hut, Sadie gets the rest" splits is efficient.