About this question
Hard · Game Theory & Logic · Quant Trader interview question · game-theory, mechanism-design, revelation-principle, information-elicitation
Consider a scenario where a large hedge fund wants to acquire a significant stake in a publicly traded company. The fund believes the company is undervalued, but acquiring a large stake could drive up the price. The fund employs a mechanism to elicit information from various brokers about their willingness to sell shares at different prices. The fund's goal is to design a mechanism that maximizes its expected profit while ensuring the brokers truthfully reveal their selling prices. Which of the