IIM-K INTERVIEW EXPERIENCE
26TH FEB, MUMBAI
WAT: Robbing Peter to pay Paul - the story of PSU Privitisation
PI: Panel was of two professors. One Male and One Female. Will refer to them as M and F, will refer to myself as H. Don't know background of panel as students of all streams were being asked a good amount of academics.
*Entered the room and had a seat. Exchanged pleasantries.*
I'll divide my interview within two parts. The first part I was happy with and the second part where I made a few mistakes.
PART 1
M: Nice suit.ย
H: Thank you sir.
M: Name 5 companies that make suits.
H: Started listing brands such as Arrow and Blackberry at first, then switched to companies like Raymond and Arvind. Named only 3.ย
M: Okay.
F: So you've done your graduation in economics. What's your favourite subject?
H: Managerial Economics.
F: What concepts come under managerial economics except demand supply and elasticity?
H: Costs and Contribution. Explained giving an example at workplace.
F: What is shut down point? Why stop production at shut down point?
H: Explained
F asked examples of costs my workplace project incurred. Asked what is step fixed costs. Explained.ย
F asked if I was good with econometric anaylsis. Told her was poor at that subject in college and would like to answer something else. F raised her eyebrow but decided to ask me questions from different subjects.
F: Average cost Vs Marginal Cost.ย
H: Explained using workplace examples again.ย
F: Does your company price its products over the AVC or below?
H: explained that it prices above AVC because company (publishing house) incurs a lot of fixed costs on projects and need to cover Variable cost for the projects to make economic sense
F : I am not convinced your workplace did not have a lot of variable costs. You are surely forgetting something.
H: Explained an entire project to show the type of costs we incurred in general as a whole. F seems satisfied after that.ย
M: What else did you do at your work.
H: Listed key roles and gave a small example of the same. Was asked to stop in between. No follow up questions.
M: What other competitors are involved in your industry? (Self Publishing)
H: gave 2 national and 2 local players.
M: That's it?
H: These are the biggest ones. We also face competition from people online offering their services on sites like Fiverr and Upwork.
M: *stonefaced expression* Why is self publishing not well known?
H: I told him it is relatively well known however slightly difficult to pursue either due to economic reasons or time commitments.ย
M: Your job has nothing to do with Economics? Why did you take it?
H: Disagreed. Told him parts of Economics goes in evaluating the projects. Also told him about Diploma I did with CIMA (UK based Management Accountancy body.) Told him various concepts I learnt in that. Hence I found a job where I could use both. Small companty but happy with all that I learned there.
M remained stonefaced.ย
PART 2
M: Who received Nobel Prize in Economics? He was from India?
H: Answered.
M: What did he receive it for?
H: Told him don't know properly but was largely for experimental approach to tackling poverty. Explained a bit.
M: What is an experiment?
H: Explained roughly. *The question caught me off guard.*
M: Name 2 economists other than 2019 Nobel Prize Winners who used experiments?
H: Gave example of Richard Thaler and Daniel Kahnemann, both receiving Nobel Prizes in Economics for Behavioural Economics. (Daniel Kahnemann is a psychologist - I mentioned that.)
M: Tell me Kahnemann's Theory for what he received the prize for?
H: *visibly confused* He contributed a lot towards the field in general and I believe he got his award for all his contributions. Started explaining his contributions but was interrupted...
M: No, he had a specific theory. tell me that.
H: *Remained defiant* Sir I'm sure it was all of his works and not just a particular theory.
M: Explain Prospect Theory (Theory of Daniel Kahnemann for what he got the prize. I stand corrected.)
H: Don't know sir. *Went home and googled. Knew the theory in concept but did not know it was called Prospect Theory*
M: What is the basic assumption in economics for consumers?
H: Rationality. Explained the same giving an example of law of demand.
M: Asked about gold purchasing behaviour where people people buy more when price increases.
H: Answered gold was an exception as people used it as an investment and also to a certain extent as a status symbol.
M: People also buy goods with high prices, what do you have to say about that.
H: In cases of incomplete information, people tend to use price as an indication of quality.ย
M: Then how can you use law of demand example to say people are rational, your definition is wrong.
H: Pointed out rationality was an assumption, in the real world there is a lot that affects decision making that regular economics fails to take in account of.ย
M: I don't think you know what rationality means.
H: *smiled* I believe my definition is correct sir.
M: Okay. I'm done.ย
F: Who is in charge for monetary and fiscal policy?
H: Answered.ย
F: What was RBI's latest monetary policy?
H: Explained the relaxing of CRR and introduction of Long Term Repo rates to ease credit into the economy. Called repo rate interest rate by mistake - however F pointed that out to me and let me correct myself.
M and F: We're done. Thank You.
H: Thank you so much.
While leaving M asked for my IIM calls. Told him only K and S.ย
Overall verdict: I was happy with my interview. Given how random IIMK can be with their interview, I was happy that I was asked things I could answer and justify. Slipped up a bit when I was questioned about the Nobel Prize theories, otherwise did well.ย
WAT was okay. Wrote about increasing deficits and how the government needed the money to cover that deficit. Talked about LIC and AIR India a bit. Kept it short but crisp.ย