Five pirates have found a treasure chest containing one hundred coins, and are now in the process of dividing the treasure among themselves. In their usual democratic fashion they decide that the oldest of them will decide on how split up the treasure. After he has made his decision they will all vote to accept or reject his plan.
If at least half of them vote to reject the plan, the oldest pirate gets thrown overboard, and the process is restarted with the next-to-oldest coming up with the plan, and so on.
Given that the pirates are all trying maximise the amount of treasure they get, how should the oldest pirate propose they share it?
Keep in mind that they, as proper pirates, are all perfectly logical and rational. And getting no coins is just as bad as getting thrown overboard.
Categories: game theory