Games with Incomplete Information Played by “Bayesian” Players, I–III: Part I. The Basic Model

(This article originally appeared in Management Science, November 1967, Volume 14, Number 3, pp. 159–182, published by The Institute of Management Sciences.) The paper develops a new theory for the analysis of games with incomplete information where the players are uncertain about some important parameters of the game situation, such as the payoff functions, the strategies available to various players, the information other players have about the game, etc. However, each player has a subjective probability distribution over the alternative possibilities. In most of the paper it is assumed that these probability distributions entertained by the different players are mutually “consistent,” in the sense that they…