PREFERENCES AND DOMAINS Clause Samples

PREFERENCES AND DOMAINS. Preferences of individual agents i € N is modeled using valuation functions vi: 2G -> R, mapping bundles of goods to the reals. We shall assume that agents only care about the bundle they actually hold (no externality), so we can safely use vi (A) as a shorthand for vi (A (i)), the value agent i assigns to the bundle received in allocation A. We also make the assumption that all valuations vi are normalized, in the sense that vi({ A}) = 0. Sometimes the scenario takes place in a specific domain, in the sense that all agents’ valuations functions are known to belong to restricted class of functions.