A Survey on Hypergame Theory: Modeling Misaligned Perceptions and Nested Beliefs for Multi-agent Systems

Researchers published a comprehensive survey on hypergame theory on arXiv on July 19, 2025, addressing the limitations of classical game-theoretic models when applied to real-world multi-agent systems characterized by uncertainty, misaligned perceptions, and nested beliefs. The survey examines how traditional game theory assumes rational agents, complete information, and common knowledge of payoffs - assumptions that rarely hold in complex real-world scenarios where different actors may have fundamentally different understandings of the same situation. The authors review various extensions to classical game theory that incorporate cognitive constraints, subjective beliefs, and heterogeneous reasoning approaches, with particular focus on hypergame theory as a framework for modeling situations where agents possess different perceptions of the game being played. This comprehensive analysis provides researchers in artificial intelligence, economics, and political science with valuable insights into developing more robust models of strategic interaction that better reflect the complexities of real-world decision-making environments.