Question
I need help with Bayes' rule. Here are the questions I need answered, I'm not sure how to insert a picture for the visual of
I need help with Bayes' rule. Here are the questions I need answered, I'm not sure how to insert a picture for the visual of the game
7.3 Note the various labels given in the game tree above, for each of player 2's nodes. Each of these represents a belief for player 2 about the relative chance of being at one of the two nodes in each information set. We can also describe the beliefs using the language of conditional probability, i.e. probability of a good type given E was played; there are four such beliefs: p(b|E), p(g|E), p(b|E), and p(g|E). Match each of the latter set of probabilities to one of the four labels.
7.4 Does this game possess a separating equilibrium? If so, provide the strategies for both players, as well as the beliefs for player 2. If not, explain why not.
7.5 Does this game possess a pooling equilibrium? If so, provide the strategies for both players, as well as the beliefs for player 2 at any on-path information sets. If not, explain why not.
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