Three people and are sitting on stairs one after another such that on the first stair cannot see the two above him and on the second stair cannot see the one above him. There are 2 red and 2 white hats available and each person is wearing one of them. However, no one knows the color of their hat.
The following conversation then took place between and :
I don't know which color hat I'm wearing.
At first I didn't know, but I know the color of my hat now.
If is wearing a red colored hat, what color hat is wearing?
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Relevant wiki: K-level thinking
As A does not know which colour hat is he wearing, B and C are wearing a red hat and a white hat in some order; if both of them are wearing the same colour hat, then A would know which colour hat does he wear, as there are only 2 hats of each colour. Since C is wearing a red hat, B must be wearing a white hat.