(6) Beliefs and Bayes' Rule

Question 1

Beliefs - Definition

Answer 1

• Beliefs are probability distributions over the decision nodes within an information set
• Must be correct for a Nash EQ

Question 2

What is the formula of the Bayes’ rule?

Answer 2

Pr{X1|Y} = Pr{Y|X1} * Pr{X1} / Pr{Y}