Divide and compromise Academic Article uri icon


  • 2017 Elsevier B.V. We introduce two symmetrized versions of the popular divide-and-choose mechanism for the allocation of a collectively owned indivisible good between two agents when monetary compensation is available. Our proposals retain the simplicity of divide-and-choose and correct its ex-post asymmetry. When there is complete information, i.e., agents know each other well, both mechanisms implement in subgame perfect equilibria a unique allocation that would be obtained by a balanced market. The results hold for general continuous preferences that may not be quasi-linear.

published proceedings


author list (cited authors)

  • Nicolo, A., & Velez, R. A.

citation count

  • 8

complete list of authors

  • Nicolo, Antonio||Velez, Rodrigo A

publication date

  • November 2017