Q. There are three wise men in a room: A, B and C. You decide to give them a challenge. Suspecting that the thing they care about most is money, you give them $100 and tell them they are to divide this money observing the following rule: they are to discuss offers and counter-offers from each other and then take a vote. The majority vote wins. Sounds easy enough... now the question is, assuming each person is motivated to take the largest amount possible, what will the outcome be?
Solution :
• It is unlikely that one wise man would be voted out because counter-offers are allowed.
Consider: A and B decide to leave C out and split halfway. C offers B to leave A out instead, and as incentive offers B $60 as compared to $50 (Note: for C, $40 is better than nothing at all).
• Now A will try to raise that figure, but keep no less than $33 for himself. It would also happen that as B starts to get more and more of the share, A and C would decide to keep B out instead and split amongst each other. This would go on and on until they reach equilibrium with each agreeing to take their rightful share of 33 dollars.
Solution :
• It is unlikely that one wise man would be voted out because counter-offers are allowed.
Consider: A and B decide to leave C out and split halfway. C offers B to leave A out instead, and as incentive offers B $60 as compared to $50 (Note: for C, $40 is better than nothing at all).
• Now A will try to raise that figure, but keep no less than $33 for himself. It would also happen that as B starts to get more and more of the share, A and C would decide to keep B out instead and split amongst each other. This would go on and on until they reach equilibrium with each agreeing to take their rightful share of 33 dollars.
