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When utilities are additive, we uncovered in our previous paper (Bogomolnaia et al. "Dividing Goods or Bads under Additive Utilities") many similarities but also surprising differences in the behavior of the familiar Competitive rule (with equal incomes), when we divide (private) goods or bads....
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The Competitive Equilibrium with Equal Incomes is an especially appealing efficient and envy-free division of private goods when utilities are additive: it maximizes the Nash product of utilities and is single-valued and continuous in the marginal rates of substitution. The CEEI to divide bads...
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We consider bilateral matching problems where each person views those on the other side of the market as either acceptable or unacceptable: an acceptable mate is preferred to remaining single, and the latter to an unacceptable mate; all acceptable mates are welfare-wise identical. Copyright...
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