Karthik's Guide to Room Bidding
Karthik Srinivasan, MBA2
Issue date: 3/6/02 Section: Style
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1. List each room with the dollar amounts that people paid for the rooms the prior year. (We had to adjust the dollar amounts since we were going to have 6 people in the house instead of 5.)
2. In no particular order, each person bids a specific dollar amount for the room that they want. No person can have the highest bid on more than one room.
3. Continue the process until all of the rooms have a bidder. This took us a while since people had to be satisfied that the price they were paying for a room provided good value.
4. Eventually you get to the point where everyone has a room and is paying approximately what they think is a fair amount. Then, based on the total rent of the house, prorate everyone's rent so that the sum of the rents paid match the total rent you are paying for the house.