Strategic Divide and Choose
AbstractWe consider the classic cake-divison 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 multistep 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 InfoPaper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0022.
Length: 24 pages
Date of creation: Jul 2006
Date of revision:
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- NEP-ALL-2006-07-28 (All new papers)
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