Fair Profit Division

We present a cooperative game theoretic approach to fair division of profit generated by overlapping teams of workers. We argue that unlike the standard notion of efficiency, individual shares must exhaust the sum of worths of all coalitions in this setting. We show that utilising the Shapley value through a suitably constructed characteristic function to account for this feature is unlikely to be practically acceptable. Instead, we directly use this no-wastage condition (we call it ‘extended efficiency’) to completely characterize two solutions of the fair division problem that satisfy monotonicity and symmetry.