Assignment:
Suppose there are two players, N = {I, II}, and four states of nature, S = {s11, s12, s21, s22}. Player I’s information is the first coordinate of the state of nature, and Player II’s information is the second coordinate. The beliefs of each player, given his information, about the other player’s type are given by the following tables:
(a) Find a belief space describing this situation.
(b) Is this belief space consistent? If so, describe this situation as an Aumann model of incomplete information.
Provide complete and step by step solution for the question and show calculations and use formulas.