ps5sol - 14.12 Game Theory Muhamet Yildiz Fall 2005...

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Unformatted text preview: 14.12 Game Theory Muhamet Yildiz Fall 2005 Solution to Homework 5 1. Answer to Problem 1 (a) The game can be written formally as follows: Actions space: A 1 = { X,Y,Z } , A 2 = { L,R } Types space: T 1 = { t 1 } , T 2 = { = 1 , = 1 } Beliefs: p ( = 1 | t 1 ) = p ( = 1 | t 1 ) = 1 / 2 and p ( t 1 | 1 ) = p ( t 1 | 2 ) = 1 Finally, the payoffs for the two players are given by: u 1 ( X,L ; = 1 ,t 1 ) = 3 and u 2 ( X,L ; = 1 ,t 1 ) = 1 u 1 ( Y,L ; = 1 ,t 1 ) = 2 and u 2 ( Y,L ; = 1 ,t 1 ) = 2 u 1 ( Z,L ; = 1 ,t 1 ) = 0 and u 2 ( Z,L ; = 1 ,t 1 ) = 0 u 1 ( X,R ; = 1 ,t 1 ) = 0 and u 2 ( X,R ; = 1 ,t 1 ) = 0 u 1 ( Y,R ; = 1 ,t 1 ) = 2 and u 2 ( Y,R ; = 1 ,t 1 ) = 1 u 1 ( Z,R ; = 1 ,t 1 ) = 3 and u 2 ( Z,R ; = 1 ,t 1 ) = 1 u 1 ( X,L ; = 1 ,t 1 ) = 3 and u 2 ( X,L ; = 1 ,t 1 ) = 1 u 1 ( Y,L ; = 1 ,t 1 ) = 2 and u 2 ( Y,L ; = 1 ,t 1 ) = 2 u 1 ( Z,L ; = 1 ,t 1 ) = 0 and...
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This note was uploaded on 11/28/2011 for the course ECONOMICS 114.126 taught by Professor Muhammadyildiz during the Spring '05 term at University of Massachusetts Boston.

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ps5sol - 14.12 Game Theory Muhamet Yildiz Fall 2005...

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