Private Set Intersection (PSI) enables two (or more) parties, each with a private set, to identify which are the common elements across the sets, while not revealing information about the non-common elements. For example, two persons with privates lists of contacts can use PSI to determine which contacts they have in common. This is a very special case of Multiparty Computation (MPC), with well-known feasible solutions.
More generally, a Private Set Operation (PSO) can relate to an arbitrary set operation, where the input sets remain private (i.e., beyond what each party [or coalition of parties] can determine from their inputs and outputs). There are many nuances, such as:
Private Set Intersection/Operations (PSI/PSO) are among the functionalities of main interest to the NIST Privacy-Enhancing Cryptography (PEC) program. They serve as examples of MPC, and their role in conceivable applications may motivate the use of other PEC tools, such as Fully-Homomorphic Encryption (FHE), and Zero-Knowledge Proofs (ZKP). Therefore, the PEC program is especially interested in furthering the development of reference material about PSI/PSO and its many nuanced functionalities.
Private Set Intersection (PSI), and more generally Private Set Operations (PSO), can be used in myriad situations of privacy-preserving interactions. For example:
The requirements of a privacy-preserving application may require the use of variant versions of basic PSI. For example:
More general cases:
The PEC project draws PSI/PSO context from various informative initiatives:
Private Set Intersection (PSI)
PSI allows two parties to compute the intersection of their sets, without disclosing the non-intersecting elements.
If Alice has set {p,r,i,v,a,t,e} and Bob has {s,e,c,r,t}, then Alice gets {r,t,e}.

There are interesting/useful generalizations. For example:
Security and Privacy: cryptography, privacy