Establishing a partnership necessitates agreeing on how to divide future profits or losses. We consider parties who wish to contract on the division of uncertain future profits. We propose to divide profits according to the Raiffa-Kalai-Smorodinsky (K-S) solution, which is the intersection point...

Establishing a partnership necessitates agreeing on how to divide future profits or losses. We consider parties who wish to contract on the division of uncertain future profits. We propose to divide profits according to the Raiffa-Kalai-Smorodinsky (K-S) solution, which is the intersection point...