8. Consider the following static game: 2 L R U 1 1.2 where D-1,0,0 takes two...

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8. Consider the following static game: 2 L R U 1 1.2 where D-1,0,0 takes two values, 0 or 2, and y takes two values, 1 or 3. Think of as the type of player 1 and of y as the type of player 2. Thus, nature informs the value of 0 to player 1 (but not to player 2) and two player 2 the value of y (but not to player 1). Each combination of types has probability 1/4. 20 5 a. What are the pure strategies of these players? b. What pure strategies are interim dominated? For what types? c. Draw the normal-form of the expanded game and find all the pure BNE. 8. Consider the following static game: 2 L R U 1 1.2 where D-1,0,0 takes two values, 0 or 2, and y takes two values, 1 or 3. Think of as the type of player 1 and of y as the type of player 2. Thus, nature informs the value of 0 to player 1 (but not to player 2) and two player 2 the value of y (but not to player 1). Each combination of types has probability 1/4. 20 5 a. What are the pure strategies of these players? b. What pure strategies are interim dominated? For what types? c. Draw the normal-form of the expanded game and find all the pure BNE.

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