Game Theory
Bayes' Theorem is a mathematical formula used to update the probability of a hypothesis based on new evidence. It combines prior knowledge with new data to help make decisions in uncertain situations, which is particularly relevant in settings where information is incomplete. The theorem is foundational in the analysis of Bayesian games, where players have private information and must strategize based on beliefs about others' actions and types.
congrats on reading the definition of Bayes' Theorem. now let's actually learn it.