Divide-and-choose with nonmonotonic preferences

Laurence Kranich ()

Economic Theory Bulletin, 2019, vol. 7, issue 2, No 9, 276 pages

Abstract: Abstract I consider the divide-and-choose method for allocating fixed quantities of infinitely divisible commodities among two agents when their preferences are commonly known but need not be monotonic. First, I show that with single-dipped preferences, the outcome may not be envy-free (or efficient). Also, it may be advantageous to be the chooser rather than the divider. I then show that if preferences are single-peaked, the divide-and-choose outcome is envy-free. This establishes a significantly weaker sufficient condition for no-envy than monotonicity. Moreover, it shows that it is not the lack of monotonicity per se that may cause the divide-and-choose outcome to be envious but rather a particular type.

Keywords: Divide-and-choose; Envy-free; Divider’s advantage; Nonmonotonic preferences; Single-peaked; Single-dipped (search for similar items in EconPapers)
JEL-codes: D63 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s40505-018-0160-9

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