Whenever I come across highly counterintuitive claims along these lines, I code them up and see how they perform over many iterations.
This is a lot trickier to do in this case compared to, say, the Monty Hall problem, but if you restricted it just to cases in which Pirate A retained 98 of the coins, you could demonstrate whether the [98, 0, 1, 0, 1] distribution was stable or not.
Whenever I come across highly counterintuitive claims along these lines, I code them up and see how they perform over many iterations.
This is a lot trickier to do in this case compared to, say, the Monty Hall problem, but if you restricted it just to cases in which Pirate A retained 98 of the coins, you could demonstrate whether the [98, 0, 1, 0, 1] distribution was stable or not.