Compute the bayesian nash equilibrium

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Consider the following static game of incomplete information. Nature selects the type (c) of player 1, where c = 2 with probability 2/3 and c = 0 with probability 1/3. Player 1 observes c (he knows his own type), but player 2 does not observe c. Then the players make simultaneous and independent choices and receive payoffs as described by the following matrix.

1568_Figure 9.jpg

(a) Draw the normal-form matrix of this game.

(b) Compute the Bayesian Nash equilibrium.

Reference no: EM131250123

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