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Oh, fun! This is sometimes called an envy free division. A nice book on this topic is

Fair Division: From Cake-Cutting to Dispute Resolution www.amazon.com/Fair-Division-Cake-Cutting-Dispute-Resolution/dp/0521556449

Stable matchings are a related problem (sometimes called the stable marriage problem), where you want to match men and women to "marry", such that no two couples would want to swap partners. It is applied in real life to matching medical interns to hospital placements. One of my all time favorite technical books* is on this subject:

Two-Sided Matching: A Study in Game-Theoretic Modeling and Analysis http://www.amazon.com/Two-Sided-Matching-Game-Theoretic-Econ...

(* yes, that may make me weird)

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