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 s4. The following table shows the value of the four parcels in the eyes of each partner (in thousands of dollars): s1 s2 s3 s4 Danny $250 $250 $250 $250 Brianna $520 $170 $150 $160 Carlos $320 $350 $210 $120 Greedy $320 $300 $300 $80 Assuming all players bid honestly, which piece will Greedy receive? s1 s2 s3 s4 Assume Brianna and Carlos bid honestly, but Greedy decides to bid only for s1, figuring that doing so will get him s1. 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?  

Answer 1