Modeling Degrees of Fairness for Collaborations

Florian Volk, Maria Pelevina, Sheikh Mahbub Habib, Sascha Hauke, Max Mühlhäuser

Abstract: Common conceptualizations of trust concern expectations about the future behavior of an entity. We focus on expectations about fair future behavior: this aspect was insufficiently formalized to date, prohibiting formal reasoning about fairness. In this paper, we extend our previous binary fairness model to a gradual one. We demonstrate the capabilities of gradual fairness in two scenarios: "distributing revenue in open-ended funds" and "e-business retailing". In both scenarios, independent partners decide on business collaboration under incomplete information. Furthermore, we contribute an approach to determining an optimal distribution under different types and grades of fairness expectations.