Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2007/iii/paper-40/4/c/solution

For an imputation , the excess of a coalition is . Arrange these excesses in decreasing order. The nucleolus is the imputation that lexicographically minimizes this ordered vector: minimize the largest complaint first, then the next largest among ties, and so on. The empty and grand-coalition excesses are fixed at zero for every efficient allocation, so they can be omitted without changing the lexicographic comparison.
For every efficient the three pair excesses have sum
Hence at least one pair has excess at least , and the largest proper-coalition excess is at least . At the proposed allocation all three pair excesses equal , while all three singleton excesses equal . It therefore attains the best possible largest proper-coalition excess.
Moreover, any allocation attaining this bound must have all three pair excesses equal , since they are individually at most that value and sum to . This forces
whose unique solution is . It is already an imputation, so the first nonconstant lexicographic stage has a unique minimizer; there are no later choices to resolve. Therefore

New to topics? Read the docs here!