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Econ171_H3 - the payo/s of the signaling game Frogs like to...

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Econ 171 °Introduction to Game Theory Homework Problems #3 Princess and Frog Signaling Game 1. Once upon a time a signaling game was played between a princess and a frog. The frog was the Sender and the princess the Receiver. He could either say he was a "prince" or a "frog." The princess could either kiss the frog, in which case he might turn into a prince. Or, she could eat him. It was well known that 10% of the frogs in the kingdom were actually princes who had had a spell cast upon them. Only frogs that were actually princes would turn into princes when kissed by a princess. Here are some common factts about frogs and princesses that will help you understand
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Unformatted text preview: the payo/s of the signaling game. Frogs like to kiss princesses and don&t like to be eaten. Frogs who are really princes especially like to kiss princesses (because then the frog turns into a prince). Frogs who are not really princes cannot say "prince" without ±rst taking costly lessons in elocution. Princesses like to eat frogs, but they prefer to kiss frogs who are really princes. Princesses don&t like to kiss frogs who are not princes. Payo/s consistent with these facts are shown below. (a) Find all pure-strategy equilibria (both separating and pooling). 1...
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