In our laboratory experiment, subjects, in sequence, have to predict the value of a good. We elicit the second subject's belief twice: first ("first belief"), after he observes his predecessor's action; second ("posterior" belief.), after he observes his private signal. Our main result is that...

In our laboratory experiment, subjects, in sequence, have to predict the value of a good. The second subject in the sequence makes his prediction twice: first ("first belief"), after he observes his predecessor's prediction; second ("posterior belief"), after he observes his private signal. We...