Chapter 3, Problem 46E

Oscar, Bert, and Ernie are using the method of sealed bids to divide among themselves four items they commonly own. $\underset{\_}{\text{Table 3}\text{.25}}$ shows the bids that each player makes for each item.

Table 3-25

	Oscar	Bert	Ernie
Item 1	$\$8600$	$\$5500$	$\$3700$
Item 2	$\$3500$	$\$4200$	$\$5000$
Item 3	$\$2300$	$\$4400$	$\$3400$
Item 4	$\$4800$	$\$2700$	$\$2300$

a. Find the value of each player’s fair share.

b. Describe the first settlement (who gets which item and how much do they Pay or get in cash).

c. Find the surplus after the first settlement is over.

d. Describe the final settlement (who gets which item and how much do they pay or get in

cash).