In a Bayesian environment, consider two players Tan and Sian and assume that both of them have two types t1 t2, and s1, s2, respectively. Beliefs derive from a common prior p such that p (t1, s1) = , p (t1, s2) = 1/3, p (t2, s1) = 0 and p (t2, s2) = 1/3.

(a) What is ? Use the relevant and Bayes rule to derive the beliefs of the players.

(b) Give beliefs that do not correspond to a common prior.

(c) Write the Bayesian Game for this environment.