3 ms·
> In an overview of fair division applications published in Nautilus, science writer Erica Klarreich offers one such example. In the event of the contentious br
by wtbob 10y ago
> In an overview of fair division applications published in Nautilus, science writer Erica Klarreich offers one such example. In the event of the contentious breakup of a marriage or relationship, the algorithm, which Ring and Brams call “Fair Buy-Sell” requires each partner to simultaneously propose a price.
> “If John proposes $110,000 and Jane proposes $100,000 then John, the higher bidder, will buy out Jane for $105,000,” explains Klarreich. “Each participant ends up with something—either money or the business—at a price that is better than his or her offer.”
I'm curious how that would work in a marriage, given that the couple's assets are generally commingled (how can I spend our assets to pay you for our assets?).
I think that'd work better when the husband & wife each have their own personal assets, and only the common property is held in common.
- throwanem 10y agoI think that's a much more generally advisable choice, no matter how unromantic it may seem to the naïve. (It is unromantic! It has that going against it. But banking on romance to last, while heartbreakingly understandable, is often unwise - and heartbreaking.)
- oli5679 10y agoI think this is how it works. 1) A judge awards the estate be split in a given proportion 2) Illiquid assets are priced and allocated using the mechanism 3) The judge's split-proportion is achieved using the liquid assets' market prices
- PeterisP 10y agoIf there are many assets, then it's just to decide on value when splitting them; if a large item (e.g. house) is the majority of everything, then one gets the asset at the decided value; and mortgages it to pay half of that value (minus the value of other smaller assets) in cash.