Fair Allocation with Special Externalities

Abstract: Most of the existing algorithms for fair division do not consider externalities. Under externalities, the utility an agent obtains depends not only on its allocation but also on the allocation of other agents. An agent has a positive (negative) value for the assigned goods (chores). This work focuses on a special case of externality, i.e., an agent receives positive or negative value for unassigned items independent of which other agent gets it. We show that it is possible to adapt existing algorithms using a transformation to ensure certain fairness and efficiency notions in this setting. Despite the positive results, fairness notions like proportionality need to be re-defined. Further, we prove that maximin share (MMS) may not have any multiplicative approximation in this setting. Studying this domain is a stepping stone towards full externalities where ensuring fairness is much more challenging.