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Bayesian Games 12.3 Armed Conict: Consider the following strategic situation: TWO rival armies plan to seize a disputed territory. Each army's general can choose either

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Bayesian Games

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12.3 Armed Conict: Consider the following strategic situation: TWO rival armies plan to seize a disputed territory. Each army's general can choose either to attack {A} or to not attack {N}. In addition. each army is either strong {S} or weak (W) with equal probability. and the realimtions for each army are independent. Furthermore the type of each army is known only to that army's general. An army can capture the territory if either {i} it attacks and its rival does not or (ii) it and its rival attack. but it is strong and the rival is weak. If both attack and are of equal strength then neither captures the territory. As for payoffs. the territory is worth tn if captured and each army has a cost of ghting equal to 5 if it is strong and a: if it is weak. where r

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