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Fair cake-cutting in practice

Author

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  • Kyropoulou, Maria
  • Ortega, Josué
  • Segal-Halevi, Erel

Abstract

Using a lab experiment, we investigate the real-life performance of envy-free and proportional cake-cutting procedures with respect to fairness and preference manipulation. We nd that envy-free procedures, in particular Selfridge-Conway, are fairer and also are perceived as fairer than their proportional counterparts, despite the fact that agents very often manipulate them. Our results support the practical use of the celebrated Selfridge-Conway procedure, and more generally, of envy- free cake-cutting mechanisms. We also nd that subjects learn their opponents' preferences after repeated interaction and use this knowledge to improve their allocated share of the cake. Learning reduces truth-telling behavior, but also reduces envy.

Suggested Citation

  • Kyropoulou, Maria & Ortega, Josué & Segal-Halevi, Erel, 2018. "Fair cake-cutting in practice," ZEW Discussion Papers 18-053, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:18053
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    References listed on IDEAS

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    Cited by:

    1. Ortega, Josué & Segal-Halevi, Erel, 2019. "Obvious manipulations in cake-cutting," ZEW Discussion Papers 19-056, ZEW - Leibniz Centre for European Economic Research.
    2. Bhardwaj, Bhavook & Kumar, Rajnish & Ortega, Josué, 2020. "Fairness and efficiency in cake-cutting with single-peaked preferences," Economics Letters, Elsevier, vol. 190(C).
    3. Josue Ortega & Erel Segal-Halevi, 2019. "Obvious Manipulations in Cake-Cutting," Papers 1908.02988, arXiv.org, revised Oct 2019.

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    More about this item

    Keywords

    cake-cutting; Selfridge-Conway; cut-and-choose; envy; perceived fairness; preference manipulation; experimentation and learning;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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