Prove consistent state of the world in y

Reference no: EM131332744

Consider the following belief space, where the set of players is N = {I, II}, the set of states of nature is S = {s₁, s₂}, the set of states of the world is Y = {ω₁, ω₂, ω₃}, and the beliefs of the players are given by the following table:

421_Matrix 3.jpg

(a) Prove that the state of the world ω₃ is the only consistent state of the world in Y .

(b) Prove that at the state of the world ω₂, Player II believes that the state of the world is consistent.

(d) Prove that at the state of the world ω₁, the fact that the state of the world is inconsistent is not common belief among the players.

Reference no: EM131332744

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