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FluffyC comments on Nash Equilibria and Schelling Points - Less Wrong
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If C and E - and I'd say all 4 of them really, at least regarding a 98 0 1 0 1 solution - were inclined to be outraged as I suggest, and A knew this, they would walk away with more money. For me, that trumps any possible math and logic you could put forward.
And just in case A is stupid:
"But look, C and E, this is the optimal solution, if you don't listen to me you'll get less gold!"
"Nice try, smartass. Overboard you go."
B watched on, starting to sweat...
EDIT: Ooops, I notice that I missed the fact that B doesn't need to sweat since he just needs D. Still, my main point isn't about B, but A.
Also I wanna make it 100% clear: I don't claim that the proof is incorrect, given all the assumptions of the problem, including the ones about how the agents work. I'm just not impressed with the agents, with their ability to achieve their goals. Leave A unchanged and toss in 4 reasonably bright real humans as B C D E, at least some of them will leave with more money.
It seems to me that the extent to which B C D E will be able to get more money is to some extent dependent on their ability to plausibly precommit to rejecting an "unfair" deal... and possibly their ability to plausibly precommit to accepting a "fair" one.
Emphasis on "plausibly" and "PIRATES."
At minimum, if they can plausibly precommit to things, I'd expect at the very least CDE to precommit to tossing A B overboard no matter what is offered and splitting the pot three ways. There are quite possibly better commitments to make even than this.