I have a real world problem. There are n monetary items (e.g. a list of stocks, bonds, etc.) in my portfolio and there are m people to whom I will distribute my portfolio. Each item have a monetary value, but selling the items and giving equal amount of cash to each recepients would incur transaction costs. Instead, I would like to minimise transaction costs, subject to the following constraints: 1) each person should receive a list of securities that have the same monetary value. 2) Each person's individual preferences about the securities in my portfolio should be taken into account so that the final division is as Pareto efficient as possible.
What is the best way to solve this problem?
Thanks
