Difficulty: Medium
Category: Game Theory & Logic
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: game-theory, logic, common-knowledge, mutual-knowledge
Consider the classic Blue Eyes puzzle: On an island, there are 100 people. Everyone can see everyone else, but no one can see their own eye color. It is known that some people have blue eyes. Islanders are forbidden from discussing eye color. However, if an islander knows they have blue eyes, they must leave the island at dawn the next day. All islanders are perfectly logical and know that all other islanders are perfectly logical (and know that all other islanders know this, and so on). One day
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