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Consider the following discrete version of Bayesian Cournot duopoly with asymmetric information. Firm 1 has only one type but Firm 2 has has either low

Consider the following discrete version of Bayesian Cournot duopoly with asymmetric information. Firm 1 has only one type but Firm 2 has has either low cost or high cost with equal probability. Firm 2 knows his cost level but Firm 1 does not know Firm 2’s cost level. Each firm (of each type) chooses whether to produce high (Qh) or low output (Ql). The game is illustrated as follows.

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Solve for all Bayesian-Nash equilibria of this game (in pure and mixed strategies).
 

1\2 Qh Qe Qh -2, -2 0,2 Qe 2,0 0,0 H Cost Probability: 0.5 1\2 Qe Qh 2, 2 0,3 Qe 2, 1 6, 6 L Cost Probability: 0.5

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