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game theory X Litan 9 / 10 X With 9 / 10 . There are two players. with probability p . The payoffs to player

game theory

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X Litan 9 / 10 X With 9 / 10 . There are two players. with probability p . The payoffs to player 2 depend on whether 2 is a friendly player (with Foe Left Right probability p) or a foe (with probability 1 - p). Left 3,0 0,1 . Player 2 knows if he/she is a friend Right 2,0 1,1 or a foe, but player 1 doesn't know. See the following payoff matrices for with probability 1 - p details. When p = 1/4, which is a pure strategy Bayesian equilibrium: Friend Left Right (1's strategy; 2's type - 2's strategy) Left 3,1 0,0 Right 2,1 1,0 O (Right ; Friend - Left, Foe - Right); with probability p O (Right ; Friend - Right, Foe - Right); Foe Left Right O (Left ; Friend - Left, Foe - Left); Left 3,0 0,1 Right 2,0 1,1 O (Left ; Friend - Left, Foe - Right)

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