Weller's theorem, proved by Dietrich Weller in 1985, is a result in economics showing that a heterogeneous divisible resource can always be divided among partners with differing valuations in a way that is simultaneously Pareto efficient and envy free. The theorem further shows that such an allocation can be supported by a system of prices making it a competitive equilibrium with equal incomes, linking the fair cake-cutting literature to general equilibrium theory.
Facts
StatementA heterogeneous resource can be divided among n partners with different valuations in a way that is both Pareto-efficient and envy-free. 1 Classification
Statement Form Connections
Sources
1. Weller's theorem - Wikipedia
Introduction, paragraph 1, sentence 2
a heterogeneous resource ("cake") can be divided among n partners with different valuations in a way that is both Pareto-efficient (PE) and envy-free (EF).
In Group: Economic Theory, Lead section
Weller's theorem is a theorem in economics.
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