Free disposal  In various parts of economics, the term free disposal implies that resources can be discarded without any cost. For example, a fair division setting with free disposal is a setting where some resources have to be divided fairly, but some of the resources may be left undivided, discarded or donated. Examples of situations with free disposal are allocation of food, clothes jewels etc. Examples of situations "without" free disposal are:   The free disposal assumption may be useful for several reasons: