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Bidding for envy-freeness: A procedural approach to n-player fair-division problems

Author

Listed:
  • Claus-Jochen Haake

    (Institute of Mathematical Economics, University of Bielefeld, P.O. Box 100131, 33501 Bielefeld, Germany)

  • Matthias G. Raith

    (Department of Economics, University of Magdeburg, P.O. Box 4120, 39016 Magdeburg, Germany)

  • Francis Edward Su

    (Department of Mathematics, Harvey Mudd College, Claremont, CA 91711, USA)

Abstract

We develop a procedure for implementing an efficient and envy-free allocation of m objects among n individuals with the possibility of monetary side-payments, assuming that players have quasi-linear utility functions. The procedure eliminates envy by compensating envious players. It is fully descriptive and says explicitly which compensations should be made, and in what order. Moreover, it is simple enough to be carried out without computer support. We formally characterize the properties of the procedure, show how it establishes envy-freeness with minimal resources, and demonstrate its application to a wide class of fair-division problems.

Suggested Citation

  • Claus-Jochen Haake & Matthias G. Raith & Francis Edward Su, 2002. "Bidding for envy-freeness: A procedural approach to n-player fair-division problems," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(4), pages 723-749.
    • Handle: RePEc:spr:sochwe:v:19:y:2002:i:4:p:723-749
    Note: Received: 6 March 2000/Accepted: 21 May 2001
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