Baye's rule
Some of you asked for a note about Baye's rule so here it is:
https://www.dropbox.com/s/fafo6n3uj2e1hye/Baye%27s%20rule.pdf
I also was noticed that I did another small error in my solution notes for seminar 10. On the final page I have confused the pay-offs of the incumbent and the Challenger. SO I have written that hte weak never wants to deviate since 5>3 and 5>2, when it should have been 5>2 and 5>0.
Published Nov. 21, 2013 9:07 AM