Bayesian Games: Games with Incomplete Information (original) (raw)

Bayesian games, also referred to as games with incomplete information, present a significant departure from classical game theory, which assumes common knowledge among players concerning actions and payoffs. This paper outlines the conceptual framework of Bayesian games, highlighting the necessity of acknowledging players' varied beliefs and types related to the uncertainty in the game's parameters. The study addresses the methodological challenges posed by the infinite hierarchy of beliefs and discusses the importance of the consistent beliefs assumption in analyzing interactive decision-making situations where players possess partial information.