City Research Online

Decision Making Can Be Improved Through Observational Learning

Yoon, H., Scopelliti, I. ORCID: 0000-0001-6712-5332 and Morewedge, C. K. (2020). Decision Making Can Be Improved Through Observational Learning. Organizational Behavior and Human Decision Processes,

Abstract

Observational learning can debias judgment and decision making. One-shot observational learning-based training interventions (akin to “hot seating”) can produce reductions in cognitive biases in the laboratory (i.e., anchoring, representativeness, and social projection), and successfully teach a decision rule that increases advice taking in a weight on advice paradigm (i.e., the averaging principle). These interventions improve judgment, rule learning, and advice taking more than practice. We find observational learning-based interventions can be as effective as information-based interventions. Their effects are additive for advice taking, and for accuracy when advice is algorithmically optimized. As found in the organizational learning literature, explicit knowledge transferred through information appears to reduce the stickiness of tacit knowledge transferred through observational learning. Moreover, observational learning appears to be a unique debiasing training strategy, an addition to the four proposed by Fischhoff (1982). We also report new scales measuring individual differences in anchoring, representativeness heuristics, and social projection.

Publication Type: Article
Additional Information: © 2020. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Publisher Keywords: Debiasing, Social Learning, Cognitive Bias, Weight on Advice, Knowledge Transfer, Tacit Knowledge
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HM Sociology
Departments: Business School > Management
Date Deposited: 07 Oct 2020 14:55
URI: https://openaccess.city.ac.uk/id/eprint/25028
[img] Text - Accepted Version
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