Problem 4 Bayesian Nash Equilibrium 10 Pts Consider The Following Game Which Has Two States Of Nature Shown In The 1 (97.3 KiB) Viewed 95 times
Problem #4: Bayesian Nash Equilibrium (10 pts) 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 х Y 0,1 3,2 3, 2 0,1 Player 2 х Y 2,3 1,0 3,2 0,1 A Player 1 Player 1 A 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.
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