1
Q
How does a game of incomplete information come about?
A
When players do not know who their opponent is, their actions or what their payoffs are. They attempt to maximise their payoffs from beliefs.
2
Q
What is ‘common prior knowledge’?
A
The probability of each belief is common knowledge
3
Q
How do you solve a game of incomplete information?
A
By adding another player ‘Nature’ into the game. This changes the game into one of imperfect information - allowing us to use standard tools of analysis.
4
Q
What is a Bayesian NE?
A
One in which the players have no incentive to change his/her strategy?
