9. . There are two players. . The payoffs to player 2 depend on whether 2 is a friendly player (with probability p) or a foe (with probability 1 - p). • Player 2 knows if he/she is a friend or a foe, but player 1 doesn't know. See the following payoff matrices for details. Friend Left Right Left 3,1 0,0 Right 2,1 1,0 with probability p Foe Right Left 0,1 Right 1,1 with muhabili. 1 with probability 1-p When p = 1/4, which is a pure strategy Bayesian equilibrium: (1's strategy; 2's type - 2's strategy) O (Right; Friend - Right, Foe - Right); O (Left; Friend - Left, Foe - Left); O (Left; Friend - Left, Foe - Right); (Right; Friend - Left, Foe - Right); Left 3,0 2,0

9. . There are two players. . The payoffs to player 2 depend on whether 2 is a friendly player (with probability p) or a foe (with probability 1 - p). • Player 2 knows if he/she is a friend or a foe, but player 1 doesn't know. See the following payoff matrices for details. Friend Left Right Left 3,1 0,0 Right 2,1 1,0 with probability p Foe Right Left 0,1 Right 1,1 with muhabili. 1 with probability 1-p When p = 1/4, which is a pure strategy Bayesian equilibrium: (1's strategy; 2's type - 2's strategy) O (Right; Friend - Right, Foe - Right); O (Left; Friend - Left, Foe - Left); O (Left; Friend - Left, Foe - Right); (Right; Friend - Left, Foe - Right); Left 3,0 2,0

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.3P

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