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Consider two partners who simultaneously invest in a project, where the level of investment can be any positive real number. If partner i invests
Consider two partners who simultaneously invest in a project, where the level of investment can be any positive real number. If partner i invests a, and the other partner j invests *j, then the payoff of partner i will be 0,x,r, - (r)", where 6; is privately known by partner i, and the other partner believes that 6, is uniformly distributed over (0, 1]. Find a symmetric Bayesian Nash equilibrium in which the investment of partner i is in the form of a; (0,) = a+ b/o,
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