How do you approach analyzing and modeling strategic interactions?

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:

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