Transcript
Page 1: CS Liu-final presentaion-information cascades

~How  to  Decide  more  Ra0onally~�

Cheng-­‐Shu  Liu�

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We  are  Made  of  What  We  Have  Decided�

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A  Decision    to  Make  

Make  the  Decision    Sequen0ally  

Own  a  Private    Informa0on  

Observe  What    Others  Do    

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1� 2� 3� 4� 5� 6�

MB/MR�

Ball�

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A∩B

A

B

Pr A B!" #$=Pr A∩B[ ]Pr B[ ]

Pr B A!" #$=Pr B∩A[ ]Pr A[ ]

=Pr A∩B[ ]Pr A[ ]

Pr A B!" #$=Pr A[ ] ⋅Pr B A!" #$

Pr B[ ]

Pr A B!" #$⋅Pr B[ ] = Pr A∩B[ ] = Pr B A!" #$⋅Pr A[ ]

Pr A[ ]Pr B[ ]

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Pr true =Y report =Y!" #$=Pr true =Y[ ] ⋅Pr report =Y true =Y!" #$

Pr report =Y[ ]Pr true =Y[ ] = 0.2;Pr report =Y true =Y!" #$= 0.8

Pr report =Y[ ] = Pr true =Y[ ] ⋅Pr report =Y true =Y!" #$+Pr true = B[ ] ⋅Pr report =Y true = B!" #$= 0.2 ⋅0.8+ 0.8 ⋅0.2 = 0.32

Pr true =Y report =Y!" #$=Pr true =Y[ ] ⋅Pr report =Y true =Y!" #$

Pr report =Y[ ]=0.2 ⋅0.80.32

= 0.5

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Pr majority− blue blue"# $%=Pr majority− blue[ ] ⋅Pr blue majority− blue#$ %&

Pr blue[ ]

numerator = 12⋅23=13

Pr blue[ ] = Pr majority− blue[ ] ⋅Pr blue majority− blue#$ %&+

Pr majority− red[ ] ⋅Pr blue majority− red#$ %&=12⋅23+12⋅13=12

Pr majority− blue blue#$ %&=1312=23

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Pr majority− blue blue,blue, red"# $%=Pr majority− blue[ ] ⋅Pr blue,blue, red majority− blue#$ %&

Pr blue,blue, red[ ]

Pr blue,blue, red majority− blue"# $%=23⋅23⋅13=427

Pr blue,blue, red[ ] = Pr majority− blue[ ] ⋅Pr blue,blue, red majority− blue#$ %&+

Pr majority− red[ ] ⋅Pr blue,blue, red majority− red#$ %&=12⋅23⋅23⋅13+12⋅13⋅13⋅23=654

=19

Pr majority− blue blue,blue, red#$ %&=

427⋅12

19

=23

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~Thanks  for  Listening~�

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