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2. (8) Consider a Cournot duopoly operating in a market with inverse demand P(Q) = a - Q, where Q = q1 q2 is the aggregate quantity on the market. Both firms have total costs ci(qi) = cqi, but demand is uncertain: it is high (a = aH) with probability θ and low (a = aL) with probability 1 - θ. Furthermore, information is asymmetric: firm 1 knows whether demand is high or low, but firm 2 does not. All of this is common knowledge. The two firms simultaneously choose quantities. Find a Bayesian Na
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