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Game Theory 7.0/10

The Pirate Gold Problem

Five perfectly rational, greedy pirates must divide 100 gold coins. The most senior pirate proposes a distribution. If a strict majority (more than half) vote against it, he is thrown overboard and the next most senior proposes. Pirates prefer more gold, prefer to live, and will vote against a proposal if indifferent. How many coins does the most senior pirate keep for himself?

Related problems & prerequisites

Worth solving first

Source: From Ian Stewart, 'A Puzzle for Pirates', Scientific American (May 1999). Statement written for AxiomIQ.