An Introduction to Fair and Non-Manipulable Allocations of Indivisible Objects

Abstract: This paper analyzes a way of allocating primarily three indivisible objects to the same number of individuals. We define an allocation rule that, given the preferences of the individuals, distributes an amount of money together with exactly one indivisible object to each of the individuals in a fair and optimal way. The monetary distributions are foremost interpreted as compensations and are regulated by an exogenously given upper limit. We examine some of the rule's properties, with the most important one being that the rule is coalitionally strategy-proof.