Treezy11
21.04.2020 •
Mathematics
Consider this Bayesian game on page 389. Nature chooses the type of player 1, where type H occurs with probability p and type L with probability 1 p. Player 1 learns his type and then chooses either action x or action y. Simultaneously, player 2 chooses either action a or action b.
a. Assume that p = .75. Find a BNE.
b. For each value of p, find all Bayes–Nash equilibria.
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