Find a belief space describing this situation

Reference no: EM131332685

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:

2480_Matrix 09.jpg

(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.

Reference no: EM131332685

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