STEINHAUS'S LONE-DIVIDER METHOD

Steinhaus's Method is best explained in steps:

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Step 1 - one player is selected as the divider, D. They will divide the asset into N shares.

Step 2 - the other players (N - 1) are choosers. Without revealing it publicly, they will bid for all the shares they think are fair.

Step 3 - Bids are revealed all at once. If the choosers choose among themselves, choosing N-1 shares, then the fair division is possible.

The divider gives the choosers the shares they bid for, divider gets the leftover.

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For example,

Dale, Cindy, and Cherry want to divide a cake between the three of them. Dale is chosen as the divider and cuts the cake into what he sees as three equal pieces (labeled S1, S2, S3). Cindy and Cherry bid on the pieces (recording their values as seen in the table in the picture).

In this case, they are two possible fair divisions.

When choosing what fair division is best, take into account whether the divisions are envy-free, equitable, and/or Optimal Pareto.