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Group envy-freeness

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Group envy-freeness

Group-envy-freeness is a very strong fairness requirement: a group-envy-free allocation is both envy-free and Pareto efficient, but the opposite is not true.

Definitions Consider a set of n agents. Each agent i receives a certain allocation Xi (e.g. a piece of cake or a bundle of resources). Each agent i has a certain subjective preference relation <i over pieces/bundles (i.e. <math>X <_i Y</math> means that agent i prefers piece X to piece Y).

Consider a group G of the agents, with its current allocation <math>\{X_i\}_{i \in G}</math>. We say that group G prefers a piece Y to its current allocation, if there exists a partition of Y to the members of G: <math>\{Y_i\}_{i \in G}</math>, such that at least one agent i prefers his new allocation over his previous allocation (<math>X_i <_i Y_i</math>), and no agent prefers his previous allocation over his new allocation.

Consider two groups of agents, G and H, each with the same number k of agents. We say that group G envies group H if group G prefers the common allocation of group H (namely <math>\cup_{i \in H}{X_i}</math>) to its current allocation.

An allocation {X1, ..., Xn} is called group-envy-free if there is no group of agents that envies another group with the same number of agents.

Relations to other criteria A group-envy-free allocation is also envy-free, since G and H may be groups with a single agent.

A group-envy-free allocation is also Pareto efficient, since G and H may be the entire group of all n agents.

Group-envy-freeness is stronger than the combination of these two criteria, since it applies also to groups of 2, 3, ..., n-1 agents.

Existence In resource allocation settings, a group-envy-free allocation exists. Moreover, it can be attained as a competitive-equilibrium with equal initial endowments.

Alternative definition Aleksandrov and Walsh use the term "group envy-freeness" in a weaker sense. They assume that each group G evaluates its combined allocation as the arithmetic mean of its members' utilities, i.e.:<blockquote> <math>u_G(X_G) := \frac{1}\sum_{i\in G} u_i(X_i)</math></blockquote> and evaluates the combined allocation of every other group H as the arithmetic mean of valuations, i.e.:<blockquote><math>u_G(X_H) := \frac{1}\sum_{i\in G}\sum_{j\in H}u_i(X_j)</math></blockquote>By their definition, an allocation is g,h-group-envy-free (GEFg,h) if for all groups G of size g and all groups H of size h:<blockquote><math>u_G(X_G) \geq u_G(X_H)</math></blockquote>GEF1,1 is equivalent to envy-freeness; GEF1,n is equivalent to proportionality; GEFn,n is trivially satisfied by any allocation. For each g and h, GEFg,h implies GEFg,h+1 and GEFg+1,h. The implications are strict for 3 or more agents; for 2 agents, GEFg,h for all g,h are equivalent to envy-freeness.

By this definition, group-envy-freeness does not imply Pareto-efficiency. They define an allocation X as k-group-Pareto-efficient (GPEk) if there is no other allocation Y that is at least as good for all groups of size k, and strictly better for at least one group of size k, i.e., all groups G of size k: <blockquote><math>u_G(Y_G) \geq u_G(X_G)</math></blockquote>and for at least one groups G of size k: <blockquote><math>u_G(Y_G) > u_G(X_G)</math>.</blockquote>GPE1 is equivalent to Pareto-efficiency. GPEn is equivalent to utilitarian-maximal allocation, since for the grand group G of size n, the utility uG is equivalent to the sum of all agents' utilities. For all k, GPEk+1 implies GPEk. The inverse implication is not true even with two agents. They also consider approximate notions of these fairness and efficiency properties, and their price-of-fairness.

See also * [[fair-division-among-groups]] - a variant of fair division in which the pieces of the resource are given to pre-determined groups rather than to individuals.

References