Envy-Free Allocations of Indivisible Objects : An Algorithm and an Application

This paper studies envy-free allocations for economies with indivisible objects, quasi-linear utility functions, and an amount of money.We give a polynomially bounded algorithm for finding envy-free allocations.Connectedness of envy-graphs, which are used in the algorithm, characterizes the extreme points of the polytopes of sidepayments corresponding with envy-free allocations.As an application, the existence result of envy-free allocations provides a proof of the total balancedness of permutation games.