Article - preprint
We develop a procedure for implementing an efficient and envy-free allocation of m objects among n individuals with the possibility of monetary side-payments, assuming that players have quasi–linear utility functions. The procedure eliminates envy by compensating envious players. It is fully descriptive and says explicitly which compensations should be made, and in what order. Moreover, it is simple enough to be carried out without computer support. We formally characterize the properties of the procedure, show how it establishes envy-freeness with minimal resources, and demonstrate its application to a wide class of fair-division problems.
© 2002 Springer-Verlag
Claus-Jochen Haake, Matthias G. Raith, and Francis Edward Su. Bidding for envy-freeness: a procedural approach to n-player fair-division problems. Soc. Choice Welf., 19(4):723–749, 2002.
Pre-print manuscript available for download.
The publisher's version of this paper can be located at http://dx.doi.org/10.1007/s003550100149.
The algorithm in this paper has been implemented in The Fair Division Calculator (Rent/"HRS" option).