Posterior probability of being believed LOW

Posterior probability of being believed HIGH

Product Quality LOW

(proportion π )

δ + ( 1 δ ) 2 π 1 δ π

( 1 δ ) ( 1 π ) 1 δ π

Product Quality HIGH

(proportion 1 π )

( 1 δ ) π 1 δ π

1 π 1 δ π