Fair allocation of indivisible goods: the two-agent case

One must allocate a finite set of indivisible goods among two agents without monetary compensation. We impose Pareto-efficiency, anonymity, a weak notion of no-envy, a welfare lower bound based on each agent’s ranking of the subsets of goods, and a monotonicity property w.r.t. changes in preferences. We prove that there is a rule satisfying these axioms. If there are three goods, it is the only rule, together with one of its subcorrespondences, satisfying each fairness axiom and not discriminating between goods.