Question

Consider a divorce situation in which a husband and wife must divide a car

Below is a chart for what each spouse PRIVATELY reports the value of the car to be:

	husband	wife
car	$16,800	$25,800

(a) Suppose the wife gets the car. Let ?ℎ??????xhusband denote the amount of money the husband receives from the wife, and let ?????xwife denote the wife's compensation (you'll recall this is ?????=25800−?ℎ??????xwife=25800−xhusband)
Calculate the fairness interval (do not type commas in your answers):
≤?ℎ??????≤≤xhusband≤

(b) Now suppose the husband gets the car. Let ?????xwife denote the amount of money the wife receives from the husband, and let ?ℎ??????xhusband denote the husband's compensation (you'll recall this is ?ℎ??????=16800−?????xhusband=16800−xwife)
What are the most the husband could compensate the wife and still have ?ℎ??????xhusband be a fair share?
That is, how much can the husband pay the wife so that his compensation after paying is equal to his fair share (do not type commas in your answer)?  
Is this arrangement still fair? (in other words, is ?????xwife also fair?)  ?? The arrangement is fair for both parties The arrangement is unfair for the husband but is fair for the other party The arrangement is unfair for the wife, but is fair for the other party The arrangement is unfair for husband and wife

Answer 1