You are a prisoner and you are totally blind. The warden takes you and three others into a room and tells you that each of you will have the opportunity to be set free. He puts a blindfold on the other two prisoners (no need to put one on you), and makes this announcement:
"I have three white hats and two red hats. I will place a hat on each of your heads and remove the blindfold. If you can tell me what color hat is on YOUR OWN head, then you will be set free. However, if you are incorrect, then you will be executed."
He places a hat on each of your heads and removes the blindfolds. The first prisoner looks at you and the second prisoner and says, "I cannot tell what color hat is on my head." The second prisoner looks at you and the first prisoner and says, "I cannot tell what color hat is on my head."
You think about it for a minute and then, even though you are blind, you correctly deduce what color hat is on your own head. What color hat is it and how did you figure it out?
NOTE: The correct answer has been guessed. To read it, see the comments section.
Lateral Thinking Puzzlers by Paul Sloane has lots of classic riddles, clues and answers. Click here to order it.