Definition Indivisible Utilitarian Welfare
definition formalized

Indivisible Utilitarian Welfare

Specialisation of the generic utilitarian welfare ([[social_choice.fair_division.utilitarian_welfare]]) to the indivisible setting: for a valuation $v$ and allocation $A$, $$ W_{\mathrm{util}}(v, A) = \sum_{i \in N} v_i(A(i)). $$

The same definition utilitarianWelfare (under SocialChoice.FairDivision) applies, taking v.val for the per-agent utility function and the indivisible allocation ([[social_choice.fair_division.indivisible.allocation]]) for the share assignment.

The instance-keyed optimality predicate is wrapped here:

  • IsUtilitarianOptimal (abbrev): no complete allocation (IsAllocation allGoods B) has strictly larger utilitarian welfare.

Basic lemmas

Re-exported from the generic layer with the indivisible-friendly hypotheses:

  • utilitarianWelfare_mono: pointwise improvement implies welfare improvement.
  • utilitarianWelfare_unique (@[simp]): for Unique N, welfare equals the single agent's utility.

Relation to fairness

Utilitarian welfare optimization can conflict with fairness: maximizing total welfare may produce highly unequal allocations (give everything to the agent with highest per-item values). The Nash welfare (geometric mean instead of arithmetic mean) is the standard mediator — its maximizer is known to be EF1 + PO under additive valuations (Caragiannis et al. 2019). EconCSLib does not yet formalize Nash welfare; this welfare module is the additive-mean counterpart.

References

  • [AGT Chapter 11] Nisan, Roughgarden, Tardos, and Vazirani, Algorithmic Game Theory. Utilitarian welfare for indivisible goods.
  • Caragiannis, Kurokawa, Moulin, Procaccia, Shah, and Wang (2019). "The Unreasonable Fairness of Maximum Nash Welfare". EC.

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