Question

Explain the concept of a beyesian equilibrium

Answer 1

Answer:

1.The strategy of a player in given information-set determines how this player acts in that information-set. The action may depend on the history. This is similar to a sequential game.

2.The belief of a player in a given information-set determines what node in that information-set the player believes that they are playing at. The belief may be a probability distribution over the nodes in the information-set (particularly: the belief may be a probability distribution over the possible types of the other players). Formally, a belief system is an assignment of probabilities to every node in the game such that the sum of probabilities in any information set is 1.