Revisiting Fair and Efficient Allocations for Bivalued Goods

Abstract

This paper re-examines the problem of fairly and efficiently allocating indivisible goods among agents with additive bivalued valuations. Garg and Murhekar (2021) proposed a polynomial-time algorithm that purported to find an EFX and fPO allocation. However, we provide a counterexample demonstrating that their algorithm may fail to terminate. To address this issue, we propose a new polynomial-time algorithm that computes a WEFX (Weighted Envy-Free up to any good) and fPO allocation, thereby correcting the prior approach and offering a more general solution. Furthermore, we show that our algorithm can be adapted to compute a WEQX (Weighted Equitable up to any good) and fPO allocation.