Procedures for Generating an Informationally Efficient Equitable Solution

01/02/1989

Procedures for Generating an Informationally Efficient Equitable Solution

Lahiri Somdeb

Working Papers

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In this paper we consider two games which generate A-envy free allocations in a pure exchange economy with a fixed supply of resources and agents' preferences being representable by utility functions. The first game is "classical divide and choose" whereas the second game is "equal division divide and choose". A detailed analysis and comparison of the relative merits of the two games follow.

IIMA