Question

Exercise 3) Find all weak perfect Bayesian equilibria of the game depicted below Gunfighter: p = 0.75 Cowpoke: p0.25 Draw Draw _ _ -Gunslinger-_ _ Draw Draw Draw ait Draw 2,3 3,1 1.4 8,2 5,2 6,3 8,4 For clarification, there are two players in this game: Sheriff Wyatt Earp and a stranger who may be a hostile gunfighter (with probability 0.75) or a harmless cowpoke (probability 0.25). Each player simultaneously decides whether to draw their gun and shoot, or to wait and try to avoid a fight. The first payout in each pair is Earp's and the second is the stranger's

Answer 1