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1. Two people are involved in a dispute. Person 1 does not know whether person 2 is strong or weak; they assign probability a to
1. Two people are involved in a dispute. Person 1 does not know whether person 2 is strong or weak; they assign probability a to person 2's being strong. Person 2 is fully informed. Each person can either fight or yield. Each person's preferences are represented by the payoff function that assigns the payoff of 0 if they yield (regardless of what the other player chooses) and payoff of 1 if they fight and the opponent yields. If they both fights, payoffs are given by (-1,1) if person 2 is strong and (1,-1) if person 2 is weak. (a) Formalize this situation as a Bayesian game. (b) Find the Bayesian Nash equilibria if: i . a 1/2
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