Game Theory

12.10 Purication: Consider the perturbed Matching Pennies game described in Section 12.5 and show that the Bayesian Nash equilibrium identied is the unique Bayesian Nash equilibrium. (Hint: Some insights can be gained by looking at the solution to the study group example in Section 12.2.2.) 1 2.5 Mixed Strategies Revisited: Harsanyi's Interpretation In particular imagine that the payoffs are given by this \"perturbed\" Matching Pennies game: Player 2 H T _III and imagine that both 5. and 22 are independent and uniformly distributed on the interval [5. s] for some small 5 3- 0. This means that if s; > 0 is realized then player 1' has a strict preference for choosing H over T when he believes his opponent is choosing H with probability % and siniiiariy. if a;