Blinded by Experience: Prior Experience, Negative News and Belief Updating
by Bradley R. Staats, KC Diwas & Francesca Gino
EXECUTIVE SUMMARY — Theoretical models in operations management assume that decision makers update their beliefs as new information emerges. This paper investigates this process in the field and the lab. Findings show that although individuals do respond to negative news, the rate at which they do so is influenced by their own experience, peers’ experience, and their interaction. Addressing these biases is important for everyday decision makers and operating managers involved in system design as well as for scholars in the development of analytical models. ... "
No comments:
Post a Comment