Rental harmony with roommates

Yaron Azrieli and Eran Shmaya

Journal of Economic Theory, 2014, vol. 153, issue C, 128-137

Abstract: We prove existence of envy-free allocations in markets with heterogenous indivisible goods and money, when a given quantity is supplied from each of the goods and agents have unit demands. We depart from most of the previous literature by allowing agents' preferences over the goods to depend on the entire vector of prices. We then show how our theorem may be applied in two related problems: Existence of envy-free allocations in a version of the cake-cutting problem, and existence of equilibrium in an exchange economy with indivisible goods and money. Our proof uses Shapley's K-K-M-S theorem and Hall's marriage lemma.

Keywords: Envy-free; Assignment problem; Rental harmony; Cake cutting (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:153:y:2014:i:c:p:128-137

DOI: 10.1016/j.jet.2014.06.006

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