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2. Simple Poker. This game is similar to the simple poker game we examined in class. e There are four cards: Two Queens, One King,
2. Simple Poker. This game is similar to the simple poker game we examined in class. e There are four cards: Two Queens, One King, One Ace, where A > K > (). e Player Il is dealt the King, face up. e Player I is dealt A or QQ, face down. Joth players have to ante (bet) 2 dollars at the beginning; so, they have at least 2 at risk. Player I can stay in the game only by raising the bet by an additional dollar (Bet); else they Fold. Player II either matches the raise (Call), or Folds. Note: Folding always ensures that the other player wins. The game tree is as below. Payoffs (Sender, King). EA0)) Queen Fold(1 b) * Call(c) Fold Hald (a) Fill in the appropriate prior beliefs (p,1-p) and payoffs in the game tree. (b) Show that there are no pooling or separating equilibria. Find the semi-separating equilibrium by calculating the following: () With what probability will the King play Call? (d) What a? supports the King's strategy? (e) With what probability will the Queen play Bet? For your convenience a clean copy of the game tree is printed on the next page
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