Consider the same informational cascade game as in Lecture 11 (prior belief = 0.5, payoff of correct choice = 1, payoff

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Consider the same informational cascade game as in Lecture 11 (prior belief = 0.5, payoff of correct choice = 1, payoff

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Consider The Same Informational Cascade Game As In Lecture 11 Prior Belief 0 5 Payoff Of Correct Choice 1 Payoff 1
Consider The Same Informational Cascade Game As In Lecture 11 Prior Belief 0 5 Payoff Of Correct Choice 1 Payoff 1 (52.71 KiB) Viewed 15 times
Consider the same informational cascade game as in Lecture 11 (prior belief = 0.5, payoff of correct choice = 1, payoff of wrong choice = 0). Let the signal accuracy be 0.85 for every player: P(SLIL is correct) = P(sR|R is correct) = 0.85. If the first consumer chooses L, what is his posterior belief P(L is correct) at the time of his choice? Please write your answer in digits, not fraction.
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