Fair division of indivisible items is a well-studied topic in Economics and
Computer Science.The objective is to allocate items to agents in a fair manner,
where each agent has a valuation for each subset of items. Envy-freeness is one
of the most widely studied notions of fairness. Since complete envy-free
allocations do not always exist when items are indivisible, several relaxations
have been considered. Among them, possibly the most compelling one is
envy-freeness up to any item (EFX), where no agent envies another agent after
the removal of any single item from the other agent's bundle. However, despite
significant efforts by many researchers for several years, it is known that a
complete EFX allocation always exists only in limited cases. In this paper, we
show that a complete EFX allocation always exists when each agent is of one of
two given types, where agents of the same type have identical additive
valuations. This is the first such existence result for non-identical
valuations when there are any number of agents and items and no limit on the
number of distinct values an agent can have for individual items. We give a
constructive proof, in which we iteratively obtain a Pareto dominating
(partial) EFX allocation from an existing partial EFX allocation.Comment: 14 pages, 2 figure