Three wise people, red hats
Published , last checked . Re-solved cold against the published wording before it went live: how puzzles and answers are checked.
They can see others' hats. Who figures out their color, and how? From the free puzzle set on Think Fanny. Next try Three switches, one bulb.

Reading around the hat problems
Hat problems are a documented family, and the trick of extracting information from the other players failing to answer is the classic common-knowledge move:
If one of these contradicts the answer above, we would rather hear it than not. See how puzzles and answers are checked.