The Pareto-dominant strategy-proof and fair rule for problems with indivisible goods (Q431227)

This article studies the general problem of allocating a set of indivisible goods to a number of agents, in the absence of monetary transfers and under the assumption of strategy-proofness, so no agent can benefit by mis-representing their preferences. The article begins with an overview of the literature and a description of the base model and the background assumptions of the problem. The authors then present two rules for this model, the Pareto-dominant envy-free rule and an extension which is also strategy-proof free. The paper concludes with several examples and an annex containing the detailed mathematical proofs of the presented results.