Game Theory Course: 6.1 Static Games of Incomplete Information

Jim Ratliff

Game Theory

Bayesian Games

Article

In many economically important situations the game may begin with some player having private information about something relevant to her decision making. These are called games of incomplete information, or Bayesian games. (Incomplete information is not to be confused with imperfect information in which players do not perfectly observe the actions of other players.) Although any given player does not know the private information of an opponent, she will have some beliefs about what the opponent knows, and we will assume that these beliefs are common knowledge.