Using the extensive form below, draw the Bayesian Normal form of the game and find all the Bayesian Nash Equilibria of the game. Explain the intuition behind the steps you are taking to get the answer.
7. In two-car automobile accidents, passengers in the larger vehicle are significantly more likely to survive than are passengers in the smaller vehicle. In fact, death probabilities are decreasing in the size of the vehicle you are driving, and death probabilities are increasing in the size of the vehicle you collide with. Some politicians and […]