Problem #4: Bayesian Nash Equilibrium Consider the following game, which has two states of nature shown in the two game tables below: "Harmful" (p = 1/3) "Helpful" (1- p 2/3) Player 2 X Y 3, 2 0,1 Player 2 X Y 0,1 3,2 2, 3 3, 2 1,0 0,1 A A Player 1 Player 1 B B a) Assume that Player 1 knows what the true state of nature is when playing this game, but Player 2 does not. Find all of the game's Bayesian Nash equilibria. (Hint: It may help to arrange the game tables appropriately.) b) Now, assume that Player 2 knows the true state of nature, but Player 1 does not. Find all of the game's Bayesian Nash equilibria.

Problem #4: Bayesian Nash Equilibrium Consider the following game, which has two states of nature shown in the two game tables below: "Harmful" (p = 1/3) "Helpful" (1- p 2/3) Player 2 X Y 3, 2 0,1 Player 2 X Y 0,1 3,2 2, 3 3, 2 1,0 0,1 A A Player 1 Player 1 B B a) Assume that Player 1 knows what the true state of nature is when playing this game, but Player 2 does not. Find all of the game's Bayesian Nash equilibria. (Hint: It may help to arrange the game tables appropriately.) b) Now, assume that Player 2 knows the true state of nature, but Player 1 does not. Find all of the game's Bayesian Nash equilibria.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.1P

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