Prisoners'dilemma of incomplete information cont'd Solution: Prisoner 1 chooses to confess,given his belief on prisoner 2 Prisoner 2 chooses to confess if he is rational,and mum if he is altruistic ■This can be written as (Confess,(Confess if rational,Mum if altruistic)) ■ Confess is prisoner 1's best response to prisoner 2's choice (Confess if rational,Mum if altruistic) (Confess if rational,Mum if altruistic)is prisoner 2's best response to prisoner 1's Confess A Nash equilibrium called Bayesian Nash equilibrium 99 Prisoners’ dilemma of incomplete information cont’d  Solution:  Prisoner 1 chooses to confess, given his belief on prisoner 2  Prisoner 2 chooses to confess if he is rational, and mum if he is altruistic  This can be written as (Confess, (Confess if rational, Mum if altruistic))  Confess is prisoner 1’s best response to prisoner 2’s choice (Confess if rational, Mum if altruistic).  (Confess if rational, Mum if altruistic) is prisoner 2’s best response to prisoner 1’s Confess  A Nash equilibrium called Bayesian Nash equilibrium