The minimal number of parallel cuts required to divide a cake into n pieces is n-1. A new 3-person procedure, requiring 2 parallel cuts, is given that produces an envy- free division, whereby each person thinks he or she receives at least a tied- for- largest piece. An extension of this...

The analysis is developed in the context of the "housemates problem," in which the rent for a house (the bad) must be apportioned among several housemates, each of whom is entitled to receive one room (the good). Each housemate is assumed to have the same endowment, so the auction of rooms is a...

One of the most elusive ingredients in the success of a deal is what deal makers euphemistically refer to as "Social issues" - how power, position, and status will be allocated among the merging companies' executives. A failure to resolve these issues often leads to the destruction of...

This paper studies equilibria for economies characterized by moral hazard (hidden action), in which the set of contracts marketed in equilibrium is determined by the interaction of financial intermediaries. The crucial aspect of the environment that we study is that intermediaries are restricted...