&gt;In ROUND100, Alice knows Bob will take whatever non-zero offer she makes.<p>Wait, how does she know that? Can you explain why you consider that the most rational choice for Bob to make? As experiment shows, this is not the optimal strategy, so I don&#x27;t see why you would call it the &quot;rational&quot; one.<p>Also, keep in mind that you&#x27;re describing an iterative game (where the same people play the same game with the same circumstances repeatedly) and the pirate game is non-iterative, since the players and circumstances change between rounds. As you note, iterative games are much more complicated and the sort of induction used in the pirate game doesn&#x27;t really work.