Explain from an analytical perspective why the commonprior a

Explain, from an analytical perspective, why the common-prior assumption is crucial in determining
Bayesian Equilibria. (Hint: Think about what happens if the common-prior assumption is violate.)

Solution

Bayesian game is a game of incomplete information. So to solve the game of incomplete information and asymetric information we need the common prior assumption. In order to solve the game a probablity is attached to the outcome of each player. It is crucial in finding the game quilibirium. In Bayseian game every player wants to maximize its payoff by given the probablity of other players and their payoff. So to maximize their utility this common prior assumption is crucial in determinimg bayesian equilibirium.