Research Seminar with Adrien Querbes (University of Manchester)

Place : Sophia Antipolis 
Time : 11.30AM - 01.00PM
Speaker : Adrien Querbes (University of Manchester)

Abstract : Search is crucial for finding solutions to complex problems. To understand how managers search complex environments, researchers have developed models based on behavioral theories of the firm, which focus on cognitively driven search strategies such as satisficing. Here we examine the effectiveness of a different class of search strategies – namely, hedonic search strategies that are guided by the positivity or negativity of information used in the search process. We show that one type of hedonic search––positive search, i.e., the systematic overweighting of positive information––outperforms rival exploratory search strategies in a complex environment. Not only does positive search confer an adaptive advantage over other hedonic search strategies but it also outperforms a standard, neutral search without resorting to a lengthier search process. We confirm this result in a series of computational experiments where boundedly rational agents seeking to improve their positions in complex environments search among local alternatives using different hedonic search strategies. Overall, our findings identify mechanisms that can help agents guided by affect to find rewarding paths in a complex environment.