Motivated by the proliferation of user-generated product-review information and its widespreaduse, this note studies a market where consumers are heterogeneous in terms of their willingness-to-pay for a new product. Each consumer observes the binary reviews (like or dislike) of consumers who...

We consider the optimization problem of a decision maker facing a sequence of coin tosses with an initially unknown probability Θ for heads. Before each toss she bets on either heads or tails and she wins one euro if she guesses correctly, otherwise she loses one euro. We investigate the effect...