Existence of efficient envy-free allocations of a heterogeneous divisible commodity with nonadditive utilities
Date
2013
Authors
Hüsseinov, F.
Sagara, N.
Advisor
Instructor
Source Title
Social Choice and Welfare
Print ISSN
0176-1714
Electronic ISSN
1432-217X
Publisher
Springer
Volume
41
Issue
4
Pages
923 - 940
Language
English
Type
Article
Journal Title
Journal ISSN
Volume Title
Abstract
This paper studies the existence of Pareto optimal, envy-free allocations of a heterogeneous, divisible commodity for a finite number of individuals. We model the commodity as a measurable space and make no convexity assumptions on the preferences of individuals. We show that if the utility function of each individual is uniformly continuous and strictly monotonic with respect to set inclusion, and if the partition matrix range of the utility functions is closed, a Pareto optimal envy-free partition exists. This result follows from the existence of Pareto optimal envy-free allocations in an extended version of the original allocation problem. © 2013 Springer-Verlag Berlin Heidelberg.