What is Bayesian games with an example?

The suspect can either be of type “criminal” or type “civilian”. The sheriff has only one type. The suspect knows its type and the Sheriff’s type, but the Sheriff does not know the suspect’s type. Thus, there is incomplete information (because the suspect has private information), making it a Bayesian game.

What is a static Bayesian game?

of a static Baysian game is as follows: – For each player i = 1,…, n, we have a set Si of strategies. We call s = (s1, …, sn) a strategy profile of the game where si �� Si. But she cannot observe the types of the other players. However, she can compute beliefs by using the Bayesian rule: ����(��−��|����).

What is Bayesian normal form?

Bayesian Games in Normal Form. -5- The notion of Nash equilibrium for a strategic game models a steady state in which each player’s beliefs about the other players’ actions are correct, and each player acts optimally, given her beliefs.

What is meant by Nash equilibrium?

Nash equilibrium is a concept within game theory where the optimal outcome of a game is where there is no incentive to deviate from the initial strategy. A game may have multiple Nash equilibria or none at all.

What are beliefs in game theory?

A belief system thus encodes players’ expectations of each others’ play in the whole game (not just along one path). A belief system µ is weakly consistent with a behavior strategy profile y if µ agrees with the conditional probability distribution µ(·|y) induced by y over the information sets on its path.

What is a Bernoulli payoff?

Each person^s preferences are represented by the expected value of a Bernoulli payoff function that assigns the payoff of 0 if she yields (regardless of the other person^s action) and a payoff of 1 if she fights and her opponent yields; if both people fight then their payoffs are (#1, 1) if person 2 is strong and (1, # …