Drawbacks of existing procedures are illustrated and a method of efficient fair division is proposed that avoids them. Given additive participants' utilities, each item is priced at the geometric mean (or some other function) of its two highest valuations. The utilities are scaled so that the...

This paper extends the classic Rothschild-Stiglitz characterization of comparative risk (quot;increasing riskquot;) in two directions. By adopting a more general definition of quot;mean preserving spread,quot; it provides a direct construction of a sequence of MPS's linking any pair of...

When rational risk-averse agents must choose among and share monetary risks, it is known that efficient sharing is typically nonlinear, even with common beliefs. Wherever it is, the sharing rule may affect the choice, randomized choice may allow everyone to gain, and indeed a randomized choice...