Fair resource allocation: Using welfare-based dominance constraints

buir.contributor.orcidKarsu, Özlem|0000-0002-9926-2021en_US
dc.citation.epage578en_US
dc.citation.issueNumber2en_US
dc.citation.spage560en_US
dc.citation.volumeNumber297en_US
dc.contributor.authorArgyris, N.
dc.contributor.authorKarsu, Özlem
dc.contributor.authorYavuz, Mirel
dc.contributor.bilkentauthorKarsu, Özlem
dc.date.accessioned2023-02-17T08:50:03Z
dc.date.available2023-02-17T08:50:03Z
dc.date.issued2022-03-01
dc.departmentDepartment of Industrial Engineeringen_US
dc.description.abstractIn this paper we consider the problem of supporting resource allocation decisions affecting multiple beneficiaries. Such problems inherently involve efficiency-fairness trade-offs. We introduce a new approach based on the paradigm of maximizing efficiency subject to constraints to ensure that the decision is acceptably fair. In contrast to existing literature, we incorporate fairness in the form of welfare dominance, ensuring that the resultant distribution of benefits to beneficiaries is at least as good as some reference distribution with respect to a set of social welfare functions that satisfy commonly accepted efficiency and fairness related axioms. We introduce a practical means to parameterize the problem, which allows for excluding welfare functions that are deemed insufficiently or overly sensitive to inequality. This allows for analyzing the impact of changes in inequality aversion on efficiency, thus revealing the trade-off between efficiency and fairness. We develop tractable reformulations for the resulting non-linear multi-level optimization problems. We then extend this approach for cases where resources are allocated to groups of individuals with different sizes. We demonstrate the potential use of the suggested framework on two case studies: a workload allocation problem and a healthcare provisioning problem.en_US
dc.identifier.doi10.1016/j.ejor.2021.05.003en_US
dc.identifier.eissn1872-6860
dc.identifier.issn0377-2217
dc.identifier.urihttp://hdl.handle.net/11693/111482
dc.language.isoEnglishen_US
dc.publisherElsevieren_US
dc.relation.isversionofhttps://dx.doi.org/10.1016/j.ejor.2021.05.003en_US
dc.source.titleEuropean Journal of Operational Researchen_US
dc.subjectDecision support systemsen_US
dc.subjectEfficiencyen_US
dc.subjectFairnessen_US
dc.subjectResource allocationen_US
dc.subjectSocial welfareen_US
dc.titleFair resource allocation: Using welfare-based dominance constraintsen_US
dc.typeArticleen_US
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