Competitive envy-free division

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We are concerned with a fair division problem in which the indivisible ``goods to be distributed among a finite number of individuals have divisible ``bads associated with them. The problem is formulated and analyzed in terms of the housemates problem. We present an efficient procedure that decides whether an envy-free solution exists, and if so, finds one of them; otherwise finds a solution such that each envious housemate is assigned a room whose rent is zero.











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