Bayesian Nash equilibrium is a concept in game theory that suggests how individuals will behave in a strategic interaction when they incorporate uncertain information into their decision-making process. It is based on Bayes' theorem, which deals with updating beliefs based on new evidence. In Bayesian Nash equilibrium, players make decisions based on their subjective beliefs about the potential outcomes of the game, given the available information they possess. This approach takes into account not just the probability of certain outcomes but also the players' beliefs about these probabilities. Bayesian Nash Equilibrium is considered a refinement of Nash equilibrium, which only considers players' final strategies in a game. Bayesian Nash Equilibrium has applications in various fields, including economics, political science, and computer science.
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