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, nash-equilibrium, coordination, prisoner-dilemma
Consider a two-player game. In the Stag Hunt, two hunters can choose to cooperate and hunt a stag, or defect and hunt a hare. If both hunters cooperate, they successfully catch the stag, and each receives a payoff of 4. If one hunter defects and the other cooperates, the defector catches a hare and receives a payoff of 3, while the cooperator receives a payoff of 0. If both hunters defect, they each catch a hare and receive a payoff of 2. In the Prisoner's Dilemma, two prisoners can choose to co
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