Exlain the example of informational structure


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Q: A game involves two agents with the goal functions fi(θ, x1, x2) = (θ - x1- x2) xi, where xi ≥ 0, i = 1, 2, and θ ≥ 0.

Give an example of informational structure with the following properties. Agent 1 is adequately aware of agent 2, the belief of agent 1 about the uncertain parameter is adequate. Agent 2 gains more in an equi- librium outcome than agent 1.

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