When sharing the last slice of cake, there’s an easy way to guarantee that an equitable split happens – one person cuts the slice, then the other gets to pick which of the two remaining half pieces they want.

Assuming that both parties want as much cake as possible, the cutter is incentivized to make their best effort to make an even cut, knowing that they will be stuck with the smaller of the two pieces.

It’s an interesting thought exercise for other types of deals.

When you’re trying to reach an acceptable agreement, or even if you just want to see how a deal appears from a different viewpoint, try thinking like you were cutting a slice of cake.

If the terms were accepted as you proposed them, would you be ok with letting the other party choose which side of the deal they got?

-Brandon