Abstract
Adaptive decision-making often requires one to infer unobservable states based on incomplete information. Bayesian logic prescribes that individuals should do so by estimating the posterior probability by integrating the prior probability with new information, but the neural basis of this integration is incompletely understood. We record fMRI during a task in which participants infer the posterior probability of a hidden state while we independently modulate the prior probability and likelihood of evidence regarding the state; the task incentivizes participants to make accurate inferences and dissociates expected value from posterior probability. Here we show that activation in a region of left parieto-occipital cortex independently tracks the subjective posterior probability, combining its subcomponents of prior probability and evidence likelihood, and reflecting the individual participants' systematic deviations from objective probabilities. The parieto-occipital cortex is thus a candidate neural substrate for humans' ability to approximate Bayesian inference by integrating prior beliefs with new information.