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A polynomial algorithm for maxmin and minmax envy-free rent division on a soft budget

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  • Rodrigo A. Velez

    (Texas A&M University)

Abstract

The current practice of envy-free rent division, led by the fair allocation website Spliddit, is based on quasi-linear preferences. These preferences rule out agents’ well documented financial constraints. To resolve this issue we consider an extension of the quasi-linear domain that admits differences in agents’ marginal disutility of paying rent below and above a given reference, i.e., a soft budget. We construct a polynomial algorithm to calculate a maxmin utility envy-free allocation, and other related solutions, in this domain.

Suggested Citation

  • Rodrigo A. Velez, 2022. "A polynomial algorithm for maxmin and minmax envy-free rent division on a soft budget," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(1), pages 93-118, July.
    • Handle: RePEc:spr:sochwe:v:59:y:2022:i:1:d:10.1007_s00355-021-01386-z
    DOI: 10.1007/s00355-021-01386-z
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    References listed on IDEAS

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    Cited by:

    1. Velez, Rodrigo A., 2023. "Equitable rent division on a soft budget," Games and Economic Behavior, Elsevier, vol. 139(C), pages 1-14.

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