Originated by Robert Torrens (An Essay on the External Corn Trade, 1815) and David Ricardo (On the Principles of Political Economy and Taxation, 1817).
Assigns each task to whoever gives up the least to do it, which lets both parties gain even when one is better at everything.
When to reach for it
Work must be divided among people, teams, or partners, and the strongest performer is doing everything because they do it best.
How it runs
- List the tasks and the people or teams available.
- Estimate what each would give up to do each task.
- Give each task to whoever gives up least.
- Check that every party ends up better off.
- Revisit as skills and workloads change.
Where it sits in SOLVE eX
Go to the source
- On the Principles of Political Economy and Taxation, 1817
- An Essay on the External Corn Trade, 1815