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Strategic divide and choose

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  • Nicolò, Antonio
  • Yu, Yan

Abstract

We consider the classic cake-division problem when the cake is a heterogeneous good represented by an interval in the real line. We provide a mechanism to implement, in an anonymous way, an envy-free and efficient allocation when agents have private information on their preferences. The mechanism is a multi-step sequential game form in which each agent at each step receives a morsel of the cake that is the intersection of what she asks for herself and what the other agent concedes to her.

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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 64 (2008)
Issue (Month): 1 (September)
Pages: 268-289

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Handle: RePEc:eee:gamebe:v:64:y:2008:i:1:p:268-289

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Web page: http://www.elsevier.com/locate/inca/622836

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  1. Steven J. Brams & Paul H. Edelman & Peter C. Fishburn, 2003. "Fair Division Of Indivisible Items," Theory and Decision, Springer, vol. 55(2), pages 147-180, 09.
  2. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
  3. Olivier Compte & Philippe Jehiel, 2004. "Gradualism in Bargaining and Contribution Games," Review of Economic Studies, Wiley Blackwell, vol. 71(4), pages 975-1000, October.
  4. Weingast, Barry R. & Wittman, Donald, 2008. "The Oxford Handbook of Political Economy," OUP Catalogue, Oxford University Press, number 9780199548477, September.
  5. Alkan, Ahmet & Demange, Gabrielle & Gale, David, 1991. "Fair Allocation of Indivisible Goods and Criteria of Justice," Econometrica, Econometric Society, vol. 59(4), pages 1023-39, July.
  6. William Thomson, 2004. "Divide-and-Permute," RCER Working Papers 510, University of Rochester - Center for Economic Research (RCER).
  7. Crawford, Vincent P, 1977. "A Game of Fair Division," Review of Economic Studies, Wiley Blackwell, vol. 44(2), pages 235-47, June.
  8. Crawford, V. P. & Heller, W. P., 1979. "Fair division with indivisible commodities," Journal of Economic Theory, Elsevier, vol. 21(1), pages 10-27, August.
  9. Edelman, Paul & Fishburn, Peter, 2001. "Fair division of indivisible items among people with similar preferences," Mathematical Social Sciences, Elsevier, vol. 41(3), pages 327-347, May.
  10. Demko, Stephen & Hill, Theodore P., 1988. "Equitable distribution of indivisible objects," Mathematical Social Sciences, Elsevier, vol. 16(2), pages 145-158, October.
  11. Thomson, W., 1994. "Concepts of Implementation," RCER Working Papers 396, University of Rochester - Center for Economic Research (RCER).
  12. Maniquet, Francois & Sprumont, Yves, 2000. "On resource monotonicity in the fair division problem," Economics Letters, Elsevier, vol. 68(3), pages 299-302, September.
  13. Thomson, W., 1991. "Resource-Monotonic Solutions to the Problem of Fair Divosion when Preferences are Single-Peaked ," RCER Working Papers 301, University of Rochester - Center for Economic Research (RCER).
  14. Steven J. Brams & Peter C. Fishburn, 2000. "Fair division of indivisible items between two people with identical preferences: Envy-freeness, Pareto-optimality, and equity," Social Choice and Welfare, Springer, vol. 17(2), pages 247-267.
  15. Berliant, Marcus & Thomson, William & Dunz, Karl, 1992. "On the fair division of a heterogeneous commodity," Journal of Mathematical Economics, Elsevier, vol. 21(3), pages 201-216.
  16. Thomson William, 1994. "Consistent Solutions to the Problem of Fair Division When Preferences Are Single-Peaked," Journal of Economic Theory, Elsevier, vol. 63(2), pages 219-245, August.
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Cited by:
  1. Erel Segal-Halevi & Shmuel Nitzan, 2014. "Cake Cutting – Fair and Square," Working Papers 2014-01, Department of Economics, Bar-Ilan University.

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