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(5) [10 points) The stag hunt game (also called the assurance game) is a social dilemma where each player can choose to hunt a stag
(5) [10 points) The stag hunt game (also called the assurance game) is a social dilemma where each player can choose to hunt a stag or hunt a hare. The stag is difficult to hunt and you need two players to be successful. The hare is easier and can be done individually. The game can be represented below as follows: P2 Stag Hare Stag 4,4 0, 2 P1 Hare 2, 0 2, 2 Suppose that P1 is one of two types: Risky or Safe. Suppose that P2 is one of two types: Risky or Safe. While each player knows their own type, they do not know the type of the other player. However, they do know the probability that each player is a given type. The probability that P1 is the Risky type is 1/2 and Safe type is V2. The probability P2 is the Risky Type is 1/11 and the Safe type is 3A. The above matrix captures the payoffs if two Risky types meet. The preferences of the Safe type (for both P1 and P2) are the same as above, except the payoff they receive from choosing Stag if the other player chooses Stag is 1. (a) Draw the ex-interim game matrix for this game. (Hint: there will need to be four game matrices). lb) Find all (if any) pure strategy Bayesian Nash Equilibrium
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