Self-Confirming Biased Beliefs in Organizational “Learning by Doing”

Figure 4

(a) The number of alternatives (m), (b) updating rules (ERWA represents exponential recency weighted average where ϕ is a degree of recency. To be specific, the agent updates its belief on the action i as follows: ), and (c) distribution of payoffs.

(a)

(b)

(c)