Avast ye this problem
Nov. 5, 2003
After ransacking a town and making off with the booty, a gang of pirates must decide how to divide up the loot. Now, being pirates, they have devised a method which combines brutality with a hint of democracy. First, the biggest, baddest, meanest pirate of the crew proposes a distribution scheme for the treasure. Then , all the pirates vote on whether they find said distribution scheme acceptable. If half the pirates vote "yes," then the treasure is divided up accordingly. Otherwise, the biggest, baddest, meanest pirate is thrown overboard, and the next biggest, baddest, meanest pirate proposes his own distribution scheme. Assuming all pirates are rational agents out to maximize their own share of the booty, what distribution scheme should you propose if you are the biggest, baddest, meanest pirate?