Bayesian games

Bayesian games are strategic situations where players have incomplete information about each other's characteristics, such as their preferences or resources. Each player has some private knowledge, called their "type," and uses probabilistic beliefs about others’ types to make decisions. These games model real-world scenarios like auctions or negotiations, where certainty about others' traits is limited. By incorporating these beliefs, Bayesian games help analyze how players optimize their strategies considering possible uncertainties, leading to more realistic predictions of behavior in situations where complete information is unavailable.