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Hard · Game Theory & Logic · Quant Trader interview question · game-theory, nash-equilibrium, backward-induction, logic
Five pirates, A, B, C, D, and E, have 100 gold coins. They must decide how to distribute the gold. The pirates are ranked in order of seniority: A > B > C > D > E. The pirate with the highest rank proposes a distribution. All pirates, including the proposer, then vote on whether to accept it. If the proposal is approved by at least half the pirates (including the proposer), the gold is distributed accordingly. If not, the proposer is thrown overboard, and the next most senior pirate makes a new