What is the Monty Hall Problem?
The Monty Hall Problem is a problem in which you have to choose from 3 doors. 1 of the doors contains a prize; and the other 2 are “goats”, or no prize.
You choose one but it is not opened yet. But then the host reveals one door, that is not the prize, and you have to decide if swapping to the other door, or staying with the original that you chose.
The solution is: ALWAYS SWAP in this type of situation; this is why:
If you stay with the original, you will have a 33% chance of getting the prize, and 66% of NOT getting the prize. If you swap, it would be the other way around.
What is information cascade?
An information cascade is when people observe the actions of others and then make the same choice that the others have made.