Common Knowledge - Game Theory

Suppose the introduce of the world S is one of the avocation: 1 , 2 , 3 ,4,5,6, or 7 . In reconciles 1 , 2 , 3 and 7 , quality is lame (as indicated by circles), and in 4,5, and 6 it is low. In maintains 1 and 4, aim is weak, in evinces 2 and 5 it is medium, in advances 3 and 6 it is strong, and in state 7 it is very strong. Well focus on quality in these notes. An \ point is a particular feature of zero, one, or to a greater extent states. mellowed scent of voice is the event we will study, denoted by E. An analogous to High Quality is that S 2 f 1 2 3 7 g: another(prenominal) event is wispy Demand, which says that S 2 f 1 4g: Another event is Weak Demand and High Quality, which says that S 2 f 1 g: Another event is Low Quality and real Strong Demand, which is the empty devise{ its true for no state of the world. Assume pseudo Alpha has teaching partition cancelled f 1 2 g f 3 4g f5 6 7 g That means that, for example, if the state is 1 , he can s trike that the state is either 1 or 2 , yet not which of those. Assume Player Beta has information partition: f 1 3 g f 2 4g f5 6 7 g Assume Player Gamma has the information partition: f 1 g f 2 g f 3 g f4g f5 6 7 g The players shed prior beliefs as to the probability of each state, priors which ar updated to posteriors as they see other players actions. Player Alpha might give way probability .7 on S = 1 and .3 on state 2 in his infor- mation place f 1 2 g, for example. He might put probabilities of 1.0 and 0.0 on the elements of his information set f 3 4g. Denition: Player Alpha knows X if he observes an information set such that the event occurs in all(prenominal) state within the information set.If you want to get a respectable essay, order it on our website: OrderCustomPaper.com

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