Abstract for: Effect of Conditional Feedback on Learning
Formal studies of decision threshold learning assume full feedback conditions, that is, no matter what the decision is (positive or negative), the decision maker will be provided by feedback. However, in the real world feedback may be conditional on the decision made. In this paper, we investigate how conditional feedback can result in biased decisions. First, based on signal detection theory, a dynamic model of threshold learning is proposed. Then, the model is adjusted to examine effects of conditional feedback on learning and decision making. Then, the model is used to replicate some empirical findings. The results suggest conditional feedback can be a barrier to learning. Further, this study warns about problems of the current assumption of full feedback condition in most dynamic decision-making studies.