A Fair Apportionment of Dividing a Leftover Piece of Cake

question 9

Short Answer

A fair apportionment of dividing a leftover piece of cake between two children is to let child #1 cut the cake into two pieces and then to let child #2 pick which piece he or she wants. Consider the following apportionment of dividing the leftover piece of cake among three children. Let the first child cut the cake into two pieces. Then the second child is permitted to cut one of those pieces into two parts. Child #3 can select any of the pieces, followed by child #1 selecting one of the remaining pieces, followed by child #2 who gets the remaining piece. Is this allocation process fair if each child's goal is to maximize the size of his or her own piece of cake?
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__________ (Yes, No)

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Definitions:

For AGI Deduction

For AGI deductions, also known as above-the-line deductions, reduce gross income to arrive at adjusted gross income and can include expenses such as certain business expenses, alimony payments, and contributions to retirement accounts.

Material Amount

A sum of money that is large enough to influence decisions or the perception of a company's financial performance.

Sole Proprietorship

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and obligations.

Hybrid Method

An accounting approach that combines elements of both the cash basis and accrual basis methods for financial reporting.