This circular duel problem is interesting as an example of a
prisoner's dilemma.
If the person before you is trying to hit you, and the person after you is trying to miss... your only hope is to shoot the person after you - trying to miss in this case is suicide (since the only person shooting for real is aiming at you).
Engineer's solution of "everyone miss and go out for a beer" is the "cooperate" solution in the the classical prisoner's dilemma.
I think the question becomes whether B has enough incentive to defect.
(Thank you Engineer for playing with me... this is more fun than politics. Do you want to go for a beer?)
