The number t is private information to player 2 player 1


Two players simultaneously and independently have to decide how much to contribute to a public good. If player 1 contributes x1 and player 2 contributes x2, then the value of the public good is which they each receive. Assume that x1 and x2 are positive numbers.

Player 1 must pay a cost x 2 1 of contributing; thus, player 1's payoff in the game is ays the cost tx 2 /2 so that player 2's payoff is 

The number t is private information to player 2; player 1 knows that t equals 2 with probability 1/2 and it equals 3 with probability 1/2. Compute the Bayesian Nash equilibrium of this game.

Request for Solution File

Ask an Expert for Answer!!
Marketing Management: The number t is private information to player 2 player 1
Reference No:- TGS01653981

Expected delivery within 24 Hours