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1. Adam, Bob and Chad are dividing an estate consisting of a house, a small farm and a painting using the method of sealed bids. Their bids on each of the items are given in the following table:
Adam
Bob
Chad
House
$145,000
$125,000
$178,500
Farm
$450,000
$435,000
$414,000
Painting
$35,000
$55,000
$51,000
a. Find the value of each player's fair share.
b. Describe the first settlement (who gets which item and how much do they owe the estate).
c. Find the surplus after the first settlement is over.
d. Describe the final settlement.
2. Four players (A, B, C, and D) agree to divide the 16 items shown below by lining them up in order and using the method of markers. The players' bids are as indicated.
a) Which items go to A?
b) Which items go to B?
c) Which items go to C?
d) Which items go to D?
e) Which items are left over?
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