An algorithm for identifying least manipulable envy‐free and budget‐balanced allocations in economies with indivisibilities

Abstract

We analyze the problem of allocating indivisible objects and monetary compensations to a set of agents. In particular, we consider envy-free and budget-balanced rules that are least manipulable with respect to agents counting or with respect to utility gains. A key observation is that, for any profile of quasi-linear preferences, the outcome of any such least manipulable envy-free rule can be obtained via so-called agent-k-linked allocations. Given this observation, we provide an algorithm for identifying agent-k-linked allocations.