Question

This question illustrates how bidding dishonestly can end up hurting the cheater.

Four partners are dividing a million dollar property using the lone-divider method. Using a map, Danny
divides the property into four parcels S1, S2, S3, and sq. The following table shows the value of the four
parcels in the eyes of each partner (in thousands of dollars):
M4
St 32 33
Danny $250 $250 $250 $250
Brianna $490170 $170 $170
Carlos $280 $320 $240 $160
Greedy $340 $280 $270 $110
Assuming all players bid honestly, which piece will Greedy receive?
Ost
0s4
Assume Brianna and Carlos bid honestly, but Greedy decides to bid only for sy, figuring that doing so will
get him s. In this case there is a standoff between Brianna and Greedy. Since Danny and Carlos are not
part of the standoff, they can receive their fair shares. Suppose Danny gets s3 and Carlos gets s2, and the
remaining pieces are put back together and Brianna and Greedy will split them using the basic divider-
chooser method. If Greedy gets selected to be the divider, what will be the value of the piece he receives?
thousand dollars

Answer 1

If Greedy gets selected as the divider, the value of the piece he receives will be $110.

Step-by-step explanation:

In this scenario, Greedy decides to bid only for parcel S1, which results in a standoff between him and Brianna. Danny and Carlos are not part of the standoff and can receive their fair shares. Let's assume Danny gets S3 and Carlos gets S2. The remaining pieces, S4 and S1, are put back together for Brianna and Greedy to split.

If Greedy gets selected as the divider, the value of the piece he receives will be the value of S4. Looking at the given table, the value of S4 in the eyes of Danny, Brianna, and Carlos is $250, $170, and $110 respectively. Since Greedy decides to bid only for parcel S1, he would receive the piece with the remaining value.

Therefore, the value of the piece Greedy receives would be $110, as it is the value of S4 in the table.