Sample interview questions: How do you approach analyzing and modeling strategic interactions?
Sample answer:
Analytical Approach:
- Identify players and their objectives: Define the entities involved in the interaction and their respective goals.
- Define the decision space: Determine the set of available actions for each player.
- Model the payoff structure: Quantify the outcomes of each combination of actions.
- Find equilibrium strategies: Analyze the payoff structure to identify strategies that maximize each player’s expected payoff, given the strategies of others.
- Consider rationality and information: Assess the players’ rational decision-making capabilities and the information available to them.
Modeling Techniques:
- Normal form games: Represent the interaction as a matrix where each cell corresponds to a combination of actions and the associated payoffs.
- Extensive form games: Depict the sequential nature of the interaction as a tree diagram, where each node represents a decision point for a … Read full answer
Source: https://hireabo.com/job/7_4_50/Game%20Theory%20Analyst