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Question 3, Game Theory Consider the following game of public good provision with private costs q 2 0: Player 2 Player 1 Where C=Contribute and

Question 3, Game Theory

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Consider the following game of public good provision with private costs q 2 0: Player 2 Player 1 Where C=Contribute and N 0: Do not contribute and the cost 05 is i.i.d. distributed with a uniform density on [0,2].1 1. Describe the normal form representation of this game of incomplete information. In particular, dene the set of pure strategies for each player (20 Points). 2. Compute a Bayesian Nash equilibrium of this game in cutoff strategies (20 points)

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