Strategic divide and choose
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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- Barbanel, J. B. & Brams, S. J., 2001. "Cake Division with Minimal Cuts: Envy-Free Procedures for 3 Person, 4 Persons, and Beyond," Working Papers 01-07, C.V. Starr Center for Applied Economics, New York University.
- 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.
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