Suppose that P1 can be either a low type or a high type, and this type...

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Suppose that P1 can be either a low type or a high type, and this type is hidden from P2. If P1 is a low type, payoffs from playing the game P2 X Y P1 (L) A 0,0 -1,1 B -2,2 0,0 while if she is a high type, payoffs are given by P2 X Y P1 (H) A 0,0 0,1 B 2,2 1,0 Suppose that P1 is a low type with probability x and a high type with probability 1 x. (a) [5] Are there pure strategies tat are interim dominated? For what type(s)? (b) [10] Find all values of x such that {(A, B), X} is a BNE, or explain why none exists. (c) [10] Find all BNE in which P2 plays a pure, when 0 < x < 1, or explain why none exists. Suppose that P1 can be either a low type or a high type, and this type is hidden from P2. If P1 is a low type, payoffs from playing the game P2 X Y P1 (L) A 0,0 -1,1 B -2,2 0,0 while if she is a high type, payoffs are given by P2 X Y P1 (H) A 0,0 0,1 B 2,2 1,0 Suppose that P1 is a low type with probability x and a high type with probability 1 x. (a) [5] Are there pure strategies tat are interim dominated? For what type(s)? (b) [10] Find all values of x such that {(A, B), X} is a BNE, or explain why none exists. (c) [10] Find all BNE in which P2 plays a pure, when 0 < x < 1, or explain why none exists.

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a In the given game a pure strategy is interim dominated if there exists another pure strategy that ... View the full answer