Re-Biased Search: Managing Intuitive Preferences Over Time

36 Pages Posted: 5 Jul 2016

See all articles by Aleksey Korniychuk

Aleksey Korniychuk

HEC Paris - Strategy & Business Policy

Tomasz Obloj

HEC Paris - Strategy & Business Policy

Gonçalo Pacheco-de-Almeida

HEC Paris - Strategy & Business Policy

Eric Uhlmann

INSEAD

Date Written: June 30, 2016

Abstract

We study organizational search in the presence of intuitive biases. Drawing from work on the psychology of human decision making, we construe biases as unjustified preferences that arise due to automatic, spontaneous thinking. This property of decision making gives rise to a mechanism we label generative recurrence. Present this mechanism, unjustified preferences produce two opposing effects on organizational adaptation: they curb excessive experimentation but at the expense of knowledge accumulation. In the context of organizational search, these regularities allow behavioral treatments to strategically leverage the value of biases. Specifically, our results suggest that re-biasing (adopting the opposite bias) often dominates both de-biasing (eliminating the bias) as well as consistently unbiased search. Our paper provides evidence that managing rather than eliminating biases can be an effective instrument of behavioral strategy.

Suggested Citation

Korniychuk, Aleksey and Obloj, Tomasz and Pacheco-de-Almeida, Gonçalo and Uhlmann, Eric, Re-Biased Search: Managing Intuitive Preferences Over Time (June 30, 2016). HEC Paris Research Paper No. SPE-2016-1157. Available at SSRN: https://ssrn.com/abstract=2803209 or http://dx.doi.org/10.2139/ssrn.2803209

Aleksey Korniychuk (Contact Author)

HEC Paris - Strategy & Business Policy ( email )

Jouy-en-Josas Cedex, 78351
France

Tomasz Obloj

HEC Paris - Strategy & Business Policy ( email )

Jouy-en-Josas Cedex, 78351
France

Gonçalo Pacheco-de-Almeida

HEC Paris - Strategy & Business Policy ( email )

Jouy-en-Josas Cedex, 78351
France
(+33) (0)1 39 67 97 62 (Phone)

HOME PAGE: http://www.hec.edu/Faculty-Research/Faculty-Directory/PACHECO-DE-ALMEIDA-Goncalo

Eric Uhlmann

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

Register to save articles to
your library

Register

Paper statistics

Downloads
52
Abstract Views
863
rank
376,850
PlumX Metrics