Professional Documents
Culture Documents
Econ 233 - Quiz 5
Econ 233 - Quiz 5
Quiz 5
NAME:
ROLL NO.:
1. Recall the traditional Battle of the Sexes being played by Bob and Alice. This time, Bob is unsure
whether about whether Alice likes his company or not (i.e. Alice’s type). There is an equal chance
that Alice’s type is like (L) or not (N). If Alice’s type is L then their payoffs are as below:
Alice
c m
(q)
E 5,2
4,2 E
High (q)
(p)
Low (1 - p)
D 0,2
-1,2 D
T N (1 - q)
C
E 2,3
1,3 E
Convicted Acquitted
guilty 3 0
innocent -4 0
Given that in this setup the probability of 2 G signals and one I when the defendant is guilty is
4
P (2G’s and 1 I |guilty) = 9