Truthful fair division without free disposal

• Published in: Social choice and welfare Vol. 55; no. 3; pp. 523 - 545
• Main Authors: Bei, Xiaohui, Huzhang, Guangda, Suksompong, Warut
• Format: Journal Article
• Language: English
• Published: Berlin/Heidelberg Springer 01.10.2020; Springer Berlin Heidelberg; Springer Nature B.V
• Subjects: Economic Theory/Quantitative Economics/Mathematical Methods; Economics; Economics and Finance; Envy; Game Theory; International Political Economy; Meaning; Original Paper; Property; Public Finance; Resource allocation; Social and Behav. Sciences; Social Policy; Valuation
• ISSN: 0176-1714; 1432-217X
• DOI: 10.1007/s00355-020-01256-0

We study the problem of fairly dividing a heterogeneous resource, commonly known as cake cutting and chore division, in the presence of strategic agents. While a number of results in this setting have been established in previous works, they rely crucially on the free disposal assumption, meaning that the mechanism is allowed to throw away part of the resource at no cost. In the present work, we remove this assumption and focus on mechanisms that always allocate the entire resource. We exhibit a truthful and envy-free mechanism for cake cutting and chore division for two agents with piecewise uniform valuations, and we complement our result by showing that such a mechanism does not exist when certain additional constraints are imposed on the mechanisms. Moreover, we provide bounds on the efficiency of mechanisms satisfying various properties, and give truthful mechanisms for multiple agents with restricted classes of valuations.