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Reference.org
Welfare maximization
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<p>The welfare maximization problem is an <a href="/facts/Optimization_problem/QzwJfFEE">optimization problem</a> studied in <a href="/facts/Economics/HYctA2Dn">economics</a> and <a href="/facts/Computer_science/lN3pEyPz">computer science</a>. Its goal is to partition a set of items among agents with different <a href="/facts/Utility_functions_on_indivisible_goods/fYTKPz7d">utility functions</a>, such that the welfare – defined as the sum of the agents' utilities – is as high as possible. In other words, the goal is to find an item allocation satisfying the <a href="/facts/Utilitarian_rule/ASVBxH6c">utilitarian rule</a>. </p><p>An equivalent problem in the context of <a href="/facts/Combinatorial_auction/fV1GLXmf">combinatorial auctions</a> is called the winner determination problem. In this context, each agent submits a list of bids on sets of items, and the goal is to determine what bid or bids should win, such that the sum of the winning bids is maximum. </p>