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2. Sarda is deciding if she enjoys her job. Her initial belief about probability that she enjoys it is E > %. She has a
2. Sarda is deciding if she enjoys her job. Her initial belief about probability that she enjoys it is E > %. She has a good/bad day (gr/b) if she enjoys/doesn't enjoy her job with probability plf Sarda has a good day, g, she correctly remembers it later. However, if she has a bad day, 5, she remembers it as a g with probability q. (a) Suppose that q = 1 (full conrmation bias.) If Sarda remembers a good day, how do her beliefs about her job compare to What he would think if he had not yet started (i.e. she has received no signals). Assume that Sarda is sophisticated about her bias. (b) Same set up as in (a), but assume Sarda is naive about her bias
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