A patient lives for two periods, 1 and 2. Her well-being in period 2 depends on her state of health as well as some action t 0 taken in period 1. Suppose the patient's state of health can be represented by a real number s 0. For example, higher numbers could represent better health and higher potential lifetime utility. The patient's initial belief is that s = s1 = 25 with probability one-half and s = s2 = 36 with probability one-half