Reply #34: It's over simplified.

[Cary]

For one thing Alice obviously doesn't know Bob. If she did she would have never made her best offer right out of the box.

Bob is going to be Bob. Leopards don't easily change their spots.

What are Alice's choices here? Steal the cake? Kill Bob? Go make her own cake? Dump Bob and go on without him? Replace Bob?

You've taken away all of Alice's options. She has no negotiating leverage here. It's a good thing for her that Bob is so stupid. What's stopping Bob from taking the whole cake and telling Alice tough shit?