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Question 1 [35 total points].
Consider the following incomplete information game:
❼ Find all BNE, pure and mixed, when p = 1/2.
Question 2 [40 total points].
Consider the following static game:
where θ takes two values, 0 or 2, and γ takes two values, 1 or 3.
Think of θ as the type of player 1 and of γ as the type of player 2.
Thus, nature informs the value of θ to player 1 (but not to player 2) and two player 2 the value of γ (but not to player 1).
Nature picks (0, 3) and (2, 3) with probability p and 1 − p, respectively, and the other two combinations of types with probability 0.