The Adjusted Winner procedure is a method used in negotiations to fairly divide resources or assets between two parties. It aims to ensure that both parties feel satisfied with the outcome by adjusting their initial claims based on their preferences. Each party assigns points to items they value, and the process calculates a fair distribution based on these preferences. In the Adjusted Winner method, the items are allocated to maximize overall satisfaction. If one party receives more value than they are entitled to, adjustments are made by transferring items from that party to the other until both parties feel they have received an equitable share.