In communication networks, multiplexing and the division of scarce resources, max-min fairness is said to be achieved by an allocation if and only if the allocation is feasible and an attempt to increase the allocation of any participant necessarily results in the decrease in the allocation of some other participant with an equal or smaller allocation.
In best-effort statistical multiplexing, a first-come first-served (FCFS) scheduling policy is often used. The advantage with max-min fairness over FCFS is that it results in traffic shaping, meaning that an ill-behaved flow, consisting of large data packets or bursts of many packets, will only punish itself and not other flows. Network congestion is consequently to some extent avoided.
Fair queuing is an example of a max-min fair packet scheduling algorithm for statistical multiplexing and best effort packet-switched networks, since it gives scheduling priority to users that have achieved lowest data rate since they became active. In case of equally sized data packets, round-robin scheduling is max-min fair.
Generally, policies for sharing resources that are characterized by low level of fairness (see fairness measures) provide high average throughput but low stability in the service quality, meaning that the achieved service quality is varying in time depending on the behavior of other users. If this instability is severe, it may result in unhappy users that will choose another more stable communication service.
Max-min fair resource sharing results in higher average throughput (or system spectral efficiency in wireless networks) and better utilization of the resources than a work-conserving equal sharing policy of the resources. In equal sharing, some dataflows may not be able to utilize their "fair share" of the resources. A policy for equal sharing would prevent a dataflow from obtaining more resources than any other flow, and from utilizing free resources in the network.