Wikipedia - History
The problem is named after Flavius Josephus, a Jewish historian living in the 1st century. According to Josephus' account of the siege of Yodfat, he and his 40 soldiers were trapped in a cave by Roman soldiers. They chose suicide over capture, and settled on a serial method of committing suicide by drawing lots. Josephus states that by luck or possibly by the hand of God, he and another man remained until the end and surrendered to the Romans rather than killing themselves. This is the story given in Book 3, Chapter 8, part 7 of Josephus' The Jewish War (writing of himself in the third person):
However, in this extreme distress, he was not destitute of his usual sagacity; but trusting himself to the providence of God, he put his life into hazard [in the manner following]: "And now," said he, "since it is resolved among you that you will die, come on, let us commit our mutual deaths to determination by lot. He whom the lot falls to first, let him be killed by him that hath the second lot, and thus fortune shall make its progress through us all; nor shall any of us perish by his own right hand, for it would be unfair if, when the rest are gone, somebody should repent and save himself." This proposal appeared to them to be very just; and when he had prevailed with them to determine this matter by lots, he drew one of the lots for himself also. He who had the first lot laid his neck bare to him that had the next, as supposing that the general would die among them immediately; for they thought death, if Josephus might but die with them, was sweeter than life; yet was he with another left to the last, whether we must say it happened so by chance, or whether by the providence of God. And as he was very desirous neither to be condemned by the lot, nor, if he had been left to the last, to imbrue his right hand in the blood of his countrymen, he persuaded him to trust his fidelity to him, and to live as well as himself.[2]
The details of the mechanism used in this feat are rather vague. According to James Dowdy and Michael Mays,[3] in 1612 Claude Gaspard Bachet de Méziriac suggested the specific mechanism of arranging the men in a circle and counting by threes to determine the order of elimination.[4] This story has been often repeated and the specific details vary considerably from source to source. For instance, Israel Nathan Herstein and Irving Kaplansky (1974) have Josephus and 39 comrades stand in a circle with every seventh man eliminated.[5] A history of the problem can be found in S. L. Zabell's Letter to the editor of the Fibonacci Quarterly.[6]
Josephus had an accomplice; the problem was then to find the places of the two last remaining survivors (whose conspiracy would ensure their survival). It is alleged that he placed himself and the other man in the 31st and 16th place respectively.[7]
I wanted to do something like this for both problem solving and fun :)