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Consider a two-player game with the following payoff matrix, where a E {-1,3} and B E {0,2}. I is common knowledge that P(B = 0)
Consider a two-player game with the following payoff matrix, where a E {-1,3} and B E {0,2}. I is common knowledge that P(B = 0) = =, P(B = 2) = =, P(a = -1) = =, and P(a = 3) = =. P2 L R U 1, 2 P1 B, a D -1, a B, O A. Represent this game in normal form.! B. Which strategies are never a best response for Player 1? What about Player 2? Explain. C. Verify that (UU, RL) is a Bayesian Nash equilibrium by showing that neither player can increase their ex-interim expected payoff given the other player's strategy. D. Find all other Bayesian Nash equilibria of this game in pure or mixed strategies
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