Martin Shubik: 2 puzzles worth knowing

2 puzzles from Martin Shubik, each explained in a minute and credited to the original work. Free on Savvy.

Three gunslingers duel at once. The worst shot should have the best odds — why?
A, B and C fight a three-way duel, firing in turn. A hits 1 in 3 shots, B hits 2 in 3, and C never misses. Each may aim at anyone. A goes first. Counter-intuitively, mathematicians…
— Martin Shubik, Game Theory and Related Approaches to Social Behavior
The Dollar Auction
An auctioneer offers a dollar bill to the highest bidder, with one twist: both the highest and second-highest bidder must pay their final bid, though only the winner gets the dolla…
— Martin Shubik, The Dollar Auction Game: A Paradox in Noncooperative Behavior and Escalation

Five ideas worth knowing, every week