We study monotonicity properties of solutions to the classic problem of fair cake-cutting—dividing a heterogeneous resource among agents with different preferences. Resource- and population-monotonicity relate to scenarios where the cake, or the number of participants who divide the cake, changes. It is required that the utility of all participants change in the same direction: either all of them are better-off (if there is more to share or fewer to share among) or all are worse-off (if there is less to share or more to share among). We formally introduce these concepts to the cake-cutting setting and show that they are violated by common division rules. In contrast, we prove that the Nash-optimal rule—maximizing the product of utilities—is resource-monotonic and population-monotonic, in addition to being Pareto-optimal, envy-free and satisfying a strong competitive-equilibrium condition. Moreover, we prove that it is the only rule among a natural family of welfare-maximizing rules that is both proportional and resource-monotonic.
We propose an online form of the cake cutting problem. This models situations where agents arrive and depart during the process of dividing a resource. We show that well known fair division procedures like cut-and-choose and the Dubins-Spanier moving knife procedure can be adapted to apply to such online problems. We propose some fairness properties that online cake cutting procedures can possess like online forms of proportionality and envy-freeness. We also consider the impact of collusion between agents. Finally, we study theoretically and empirically the competitive ratio of these online cake cutting procedures. Based on its resistance to collusion, and its good performance in practice, our results favour the online version of the cut-and-choose procedure over the online version of the moving knife procedure.