Question: Suppose that nature selects normal - form game A or normal - form game B with probability ( 1 ) / ( 2 ) each,
Suppose that nature selects normalform game A or normalform game B with probability each, and then Players and play the chosen normalform game.
A
B
a Suppose that, when the players choose their actions, the players do not know which matrix has been chosen. That is they think that with probability the payoffs are as in matrix A and that with probability the payoffs are as in matrix B Write the normalform of this Bayesian game. What strategy profile does IESDS predict?
b Now suppose that, before the players select their actions, Player observes nature's choice, but Player does not. Write the normalform of this Bayesian game. What strategy profile does IESDS predict?
c Is the statement "A player benefits from having more information" true or false
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