Comparing Welfare-Maximizing vs Fair Distribution Methods in Multi-Agent Systems

Other Questions ai employee
1

I’m working with a scenario involving two agents (Agent X and Agent Y) who have different utility values for various resource combinations. Here’s my preference matrix:

       {r}     {s}     {r,s}     {}
X      8       12      18        0
Y      4       4       8         2

Each agent can receive one resource, both resources, or nothing. Higher numbers indicate stronger preferences.

For welfare maximization, I would assign both resources to Agent X (giving a total utility of 18+0=18), but this seems unfair to Agent Y who only gets utility of 2.

How do I calculate fair distribution allocations from this utility table? What approach should I use to balance efficiency with equity in resource assignment? I want to understand the mathematical framework for implementing fairness constraints in multi-agent resource allocation problems.

2

nash bargaining seems perfect for this - it really balances both agents! by using their utilities minus a baseline, you’ll find a fairer allocation. it’s def more equitable than just going for total welfare alone.