6. 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.FriendLeftRightLeft3,10,0Right2,11,0with probability pFoeRightLeft0,1Right1,1probabili1Left3,02,0 with probability 1-pWhen p = 1/4, which is a pure strategy Bayesian equilibrium:(1's strategy; 2's type - 2's strategy)(Right; Friend - Right, Foe - Right);(Left; Friend - Left, Foe - Left);(Left; Friend - Left, Foe - Right);O (Right; Friend - Left, Foe - Right);

The theory that explains the way choices are made when there are more than one choices is called…

with probability 1-p When p = 1/4, which is a pure strategy Bayesian equilibrium: (1's strategy; 2's type - 2's strategy) (Right; Friend - Right, Foe - Right); (Left; Friend - Left, Foe - Left); (Left; Friend - Left, Foe - Right); O (Right; Friend - Left, Foe - Right);

with probability 1-p When p = 1/4, which is a pure strategy Bayesian equilibrium: (1's strategy; 2's type - 2's strategy) (Right; Friend - Right, Foe - Right); (Left; Friend - Left, Foe - Left); (Left; Friend - Left, Foe - Right); O (Right; Friend - Left, Foe - Right);

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Note:- Give me corrcet and incorrect explanation Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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