7

Consider the signaling game above. In this game, player 1 is T (tough) or W (weak) with probability 0.5 or 0.5 respectively. He sends L (left) signal or it (right) signal to player 2 (receiver) before this player chooses u (up) or d (down) a-) SOLVE pooling strategy in which each type sends r. (take detailed action) b) SOLVE separating strategy in which T type sends r and W type sends L . {take detailed action)