Maintaining Beliefs in the Face of Negative News: The Moderating Role of Experience

  title={Maintaining Beliefs in the Face of Negative News: The Moderating Role of Experience},
  author={Bradley R. Staats and KC DiwasSingh and Francesca Gino},
  journal={Manag. Sci.},
Many models in operations management involve dynamic decision making that assumes optimal updating in response to information revelation. However, behavioral theory suggests that rather than updating their beliefs, individuals may persevere in their prior beliefs. In particular, we examine how individuals’ prior experiences and the experiences of those around them alter their belief perseverance in operational decisions after the revelation of negative news. We draw on an exogenous announcement… 

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