Greg is deciding whether to ask Marcia out on a date. However, Greg isn’t sure whether Marcia likes him, and he would rather not ask if he expects to be rejected. Whether Marcia likes Greg is private information to her. Thus, her preferences regarding Greg constitute her type. Greg does not have any private information. Assume that there is a 25% chance that Marcia likes Greg. The Bayesian game is shown here. Should Greg ask Marcia? Find a BNE that answers this question.
Greg is deciding whether to ask Marcia out on a date. However, Greg isn’t sure whether Marcia likes him, and he would rather not ask if he expects to be rejected. Whether Marcia likes Greg is private information to her. Thus, her preferences regarding Greg constitute her type. Greg does not have any private information. Assume that there is a 25% chance that Marcia likes Greg. The Bayesian game is shown here. Should Greg ask Marcia? Find a BNE that answers this question.
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Question
Greg is deciding whether to ask Marcia out on a date. However, Greg isn’t
sure whether Marcia likes him, and he would rather not ask if he expects
to be rejected. Whether Marcia likes Greg is private information to her.
Thus, her preferences regarding Greg constitute her type. Greg does not
have any private information. Assume that there is a 25% chance that
Marcia likes Greg. The Bayesian game is shown here. Should Greg ask
Marcia? Find a BNE that answers this question.
Transcribed Image Text:Nature
Marcia likes
Greg
Probability = .25
Marcia doesn't
like Greg
Probability = .75
Greg
Do not
invite
Do not
Invite
Invite
invite
Marcia
Marcia
4
4
Yes
No
Yes
No
Greg
10
8
Marcia
7
2
3
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