Rolf, Ilse and Ulrich are members of the Frankfurt Fire Brigade. They share an apartment that has a lounge with the latest wide-screen TV. Ulrich owns the apartment, its furniture and the wide-screen TV. He can subscribe to a cable television company that has the following packages available:
Package Rate per month
A. Basic news................................................................... €32
B. Premium movies.............................................................. 25
C. Premium sport................................................................ 30
D. Basic news and premium movies......................................... 50
E. Basic news and premium sport............................................. 54
F. Premium movies and premium sport......................................... 48
G. Basic news, premium movies and premium sport.......................... 70
Rolf is a TV news addict, has average interest in movies and no interest in sport ('they are overpaid dummies'). Ilse is a movie buff, likes sport and avoids the news ('it's all depressing anyway'). Ulrich is a sports fan, has average interest in news and no interest in movies ('I always fall asleep before the end'). They all agree that the purchase of the €70 total package is a 'win-win-win' situation.
Each works on a different eight-hour shift at the fire station, so conflicts in viewing are minimal.
Required
1. What criteria might be used to guide the choice about how to allocate the €70 monthly cable fee among Rolf, Ilse and Ulrich?
2. Outline two methods of allocating the €70 among Rolf, Ilse and Ulrich.