Arun
Last Activity: 6 Years ago
The oldest pirate will propose a 98 : 0 : 1 : 0 : 1 split, in other words the oldest pirate gets 98 coins, the middle pirate gets 1 coin and the youngest gets 1 coin.
Let us name the pirates (from oldest to youngest): Alex, Billy, Colin, Duncan and Eddie.
Working backwards:
2 Pirates: Duncan splits the coins 100 : 0 (giving himself all the gold). His vote (50%) is enough to ensure the deal.
3 Pirates: Colin splits the coins 99 : 0 : 1. Eddie will accept this deal (getting just 1 coin), because he knows that if he rejects the deal there will be only two pirates left, and he gets nothing.
4 Pirates: Billy splits the coins 99 : 0 : 1 : 0. By the same reasoning as before, Duncan will support this deal. Billy would not waste a spare coin on Colin, because Colin knows that if he rejects the proposal, he will pocket 99 coins once Billy is thrown overboard. Billy would also not give a coin to Eddie, because Eddie knows that if he rejects the proposal, he will receive a coin from Colin in the next round anyway.
5 Pirates: Alex splits the coins 98 : 0 : 1 : 0 : 1. By offering a gold coin to Colin (who would otherwise get nothing) he is assured of a deal.