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D_Alex comments on A simple game that has no solution - Less Wrong Discussion
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Hmm, is this not the correct solution for two super-rational players:
Player One: Pick C with probability of 2/3 - e; pick B with probability of 1/3 + e, e being some very small but not negligible number. Player Two: Pick Y
Expected payoff for Player One is 4 2/3 -4e; way better than playing A. For B is 2/3 + 2 e, a tiny bit better than playing X - so B will play Y, since he knows that A is totally rational and would have picked this very strategy.