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Two people are involved in a dispute. Person 1 does not know whether person 2 is strong or weak; she assigns probability to person 2's being strong. Person 2 is fully informed. Each person can either fight or yield. Each person's preferences are represented by the expected value of a Bernoulli payoff function that assigns the payoff of 0 if she yields (regardless of the other person's action) and a payoff of 1 if she fights and her opponent yields; if both people fight then their payoffs are (-1, 1) if person 2 is strong and (1, -1) if person 2 is weak. Formulate this situation as a Bayesian game and find its Nash equilibria if α < 1/2 and α > 1/2.
Soda Dispensing Systems Inc. (SDS) was owned by two shareholders, each of whom owned half the stock. One shareholder was president and the other was vice president. Their shareholders' agreement stated that neither could commit corporate property ..
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