
Splitting the Bill Fairly When Everyone Ordered Differently
Eight people at dinner. The bill is $347. Someone had two cocktails. Someone had water. Someone ordered the steak. Someone had a salad. Splitting the bill equally means the salad person subsidizes the steak person. This scenario plays out millions of times every day, and the social awkwardness of splitting bills is a real, measurable problem. A study found that people ordered more expensive items when they knew the bill would be split equally. The incentive structure is perverse. The three splitting methods Equal split. Total divided by number of people. $347 / 8 = $43.38 per person (before tip). Fast, simple, and unfair if orders varied significantly. Proportional split. Each person pays for what they ordered, plus a proportional share of the tip and tax. Person A's items were $65 out of a $300 subtotal. Person A pays ($65 / $300) * $347 = $75.12. Fair, but requires itemizing the bill. Custom split. Some items are shared (appetizers, bottles of wine) and split among those who partook.
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