Consider the following signaling game. The players are 1 and 2. Nature chooses player 1?s type. Then player 1 chooses Left or Right. Then player 2 observes player 1?s move (but not type) and chooses Up or Down.

(a) What is the type space and set of pure strategies for player 1?

(b) What is the type space and set of pure strategies for player 2?

Transcribed Image Text:

(2, 2) (3,0) (1,1) (1,2) Pl.2 Pl.1, t = A prob. = 0.5 prob. = 0.5 N Pl.1, t = B Pl.2 (3,4) (1,1) (2,1) (2, 2) (2, 2) (3,0) (1,1) (1,2) Pl.2 Pl.1, t = A prob. = 0.5 prob. = 0.5 N Pl.1, t = B Pl.2 (3,4) (1,1) (2,1) (2, 2)

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a Type space is Type A Type B for player 1 and pure strategy is to go ... View the full answer