= Suppose you are interested in applying equilibrium theory to the following game, where 0₁ Nash equilibrium in which player 2 plays a sub-optimal action. Nature Player 1 P 1-p NE GF Player 2 A 1,1 -1,0 0,0 GE 0,0 R A R {E, F}. Show that there is Bayesian 1,0 -1,-1

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Suppose you are interested in applying equilibrium theory to the following game, where 01
Nash equilibrium in which player 2 plays a sub-optimal action.
{E, F}. Show that there is Bayesian
Player 2 A
• 1,1
GF
Player 1
R
• -1,0
NF
0,0
Nature
A
• 1,0
GE
1-p
R
-1, –1
NE
0,0
Transcribed Image Text:Suppose you are interested in applying equilibrium theory to the following game, where 01 Nash equilibrium in which player 2 plays a sub-optimal action. {E, F}. Show that there is Bayesian Player 2 A • 1,1 GF Player 1 R • -1,0 NF 0,0 Nature A • 1,0 GE 1-p R -1, –1 NE 0,0
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