The tell-tale anecdote
An Edgar Allan Poe story reveals a flaw in game theory.
During the whole of a dull, cramped and wearisome flight from Israel to New York, as the night pressed heavily against the airplane windows, Ariel Rubinstein had been toiling through a singularly dreary article on game theory; and at length the economist found himself, as the sharpness of his focus waned, seeking respite from the tedium in Edgar Allan Poe’s short story “The Purloined Letter.”
But the economist’s work, it seemed, wouldn’t let him rest. For in the middle of the detective story, Poe launched into an analysis of game theory! Rubinstein read:
“I knew one about eight years of age, whose success at guessing in the game of ‘even and odd’ attracted universal admiration. This game is simple, and is played with marbles. One player holds in his hand a number of these toys, and demands of another whether that number is even or odd. If the guess is right, the guesser wins one; if wrong, he loses one.
“The boy to whom I allude won all the marbles of the school. Of course he had some principle of guessing; and this lay in mere observation and admeasurement of the astuteness of his opponents. For example, an arrant simpleton is his opponent, and, holding up his closed hand, asks, ‘are they even or odd?’ Our schoolboy replies, ‘odd,’ and loses; but upon the second trial he wins, for he then says to himself, ‘the simpleton had them even upon the first trial, and his amount of cunning is just sufficient to make him have them odd upon the second; I will therefore guess odd;’ — he guesses odd, and wins.