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Efficient egalitarian equivalent allocations over a single good


  • Marco LiCalzi


  • Antonio Nicolò



This paper studies efficient and egalitarian allocations over a single heterogeneous and infinitely divisible good. We prove the existence of such allocations using only measure-theoretic arguments. Under the additional assumption of complete information, we identify a sufficient condition on agents’ preferences that makes it possible to apply the Pazner-Schmeidler rule for uniquely selecting an efficient egalitarian equivalent allocation. Finally, we exhibit a simple procedure that implements the Pazner-Schmeidler selection in a subgame-perfect equilibrium.
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Suggested Citation

  • Marco LiCalzi & Antonio Nicolò, 2009. "Efficient egalitarian equivalent allocations over a single good," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(1), pages 27-45, July.
  • Handle: RePEc:spr:joecth:v:40:y:2009:i:1:p:27-45 DOI: 10.1007/s00199-008-0361-9

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    References listed on IDEAS

    1. Yves Sprumont, 2004. "What is a commodity? Two axiomatic answers," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 23(2), pages 429-437, January.
    2. Sprumont, Yves & Zhou, Lin, 1999. "Pazner-Schmeidler rules in large societies," Journal of Mathematical Economics, Elsevier, vol. 31(3), pages 321-339, April.
    3. Berliant, Marcus & Dunz, Karl, 2004. "A foundation of location theory: existence of equilibrium, the welfare theorems, and core," Journal of Mathematical Economics, Elsevier, vol. 40(5), pages 593-618, August.
    4. Miceli, Thomas J & Sirmans, C F, 2000. "Partition of Real Estate; or, Breaking Up Is (Not) Hard to Do," The Journal of Legal Studies, University of Chicago Press, vol. 29(2), pages 783-796, June.
    5. Demange, Gabrielle, 1984. "Implementing Efficient Egalitarian Equivalent Allocations," Econometrica, Econometric Society, vol. 52(5), pages 1167-1177, September.
    6. Chambers, Christopher P., 2005. "Allocation rules for land division," Journal of Economic Theory, Elsevier, vol. 121(2), pages 236-258, April.
    7. Crawford, Vincent P, 1979. "A Procedure for Generating Pareto-Efficient Egalitarian-Equivalent Allocations," Econometrica, Econometric Society, vol. 47(1), pages 49-60, January.
    8. 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.
    9. Elisha A. Pazner & David Schmeidler, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, Oxford University Press, vol. 92(4), pages 671-687.
    10. Weller, Dietrich, 1985. "Fair division of a measurable space," Journal of Mathematical Economics, Elsevier, vol. 14(1), pages 5-17, February.
    11. Thomson, William, 2005. "Divide-and-permute," Games and Economic Behavior, Elsevier, vol. 52(1), pages 186-200, July.
    12. Akin, Ethan, 1995. "Vilfredo Pareto cuts the cake," Journal of Mathematical Economics, Elsevier, vol. 24(1), pages 23-44.
    13. Fabio Maccheroni & Fabio Maccheroni & Massimo Marinacci & Massimo Marinacci, 2003. "How to cut a pizza fairly: Fair division with decreasing marginal evaluations," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 20(3), pages 457-465, June.
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    Cited by:

    1. Erel Segal-Halevi & Shmuel Nitzan, 2014. "Cake Cutting – Fair and Square," Working Papers 2014-01, Bar-Ilan University, Department of Economics.
    2. repec:eee:matsoc:v:90:y:2017:i:c:p:100-110 is not listed on IDEAS
    3. Rodrigo A. Velez & Antonio Nicolo, 2016. "Divide and compromise," Working Papers 20160710-001, Texas A&M University, Department of Economics.

    More about this item


    Egalitarism; Equity; Fair division; Implementation; No-envy; D63; C70; D30;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D2 - Microeconomics - - Production and Organizations
    • D3 - Microeconomics - - Distribution
    • D4 - Microeconomics - - Market Structure, Pricing, and Design


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