1. Solve the problem in [B.7] for the case in which P wants A to choose arather than ah. Is there in this case a problem for P when she cannot observe A’s choice of a? 2. Show that, in conditions...

1. Solve the problem in [B.7] for the case in which P wants A to choose arather than ah. Is there in this case a problem for P when she cannot observe A’s choice of a?

2. Show that, in conditions [B.13]–[B.16], we must have λ  0, μ 0, i.e. [B.6] and [B.12] cannot be satisfied as inequalities.




May 26, 2022
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