We consider the problem of fairly allocating an indivisible good to on
e of several agents equally entitled to it when monetary compensations
to the others are possible. Our primary normative concept is no-envy.
First, we show that there is no non-manipulable selection from the no
-envy solution. Then we study the direct revelation games associated w
ith subsolutions of the no-envy solution. The set of equilibrium alloc
ations of any one of them coincides with the set of envy-free allocati
ons for the true preferences. Journal of Economic Literature Classific
ation Numbers: C72, D63, D71, D82. (C) 1995 Academic Press, Inc.