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Greg is deciding whether to ask Marcia out on a date. However, Greg isnt sure whether Marcia likes him, and he would rather not ask
Greg is deciding whether to ask Marcia out on a date. However, Greg isnt sure whether Marcia likes him, and he would rather not ask if he expects to be rejected. Whether Marcia likes Greg is private information to her. Thus, her preferences regarding Greg constitute her type. Greg does not have any private information. Assume that there is a 25% chance that Marcia likes Greg. The Bayesian game is shown here. Should Greg ask Marcia? Find a BNE that answers this question. Nature Marcia likes Marcia doesn't Greg like Greg Probability = .25 Probability = .75 Greg Do not Do not Invite Invite invite invite Marcia Marcia 4 4 Yes No Yes No Greg 10 8 WN IN Marcia 7 2
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