Originally Posted by Soccernomics
The issue of game theory behind the penalty was best put in "The Longest Penalty Ever", a short story by the Argentine writer Osvaldo Soriano. A match in the Argentine provinces has to be abandoned seconds before time when a bent referee, who has just awarded a penalty, is knocked out by an irate player. The league court decides that the last 20 seconds of the game – the penalty kick, in effect – will be played the next Sunday. That gives everyone a week to prepare for the penalty.
At dinner a few nights before the penalty, "Gato Díaz", the keeper who has to stop it, muses about the kicker:
"Constante kicks to the right."
"Always," said the president of the club.
"But he knows that I know."
"Then we're f*cked."
"Yeah, but I know that he knows," said el Gato.
"Then dive to the left and be ready," said someone at the table.
"No. He knows that I know that he knows," said Gato Díaz, and he got up to go to bed.