  Vicarious learning is a vital component of organizational learning. We
theorize and model two fundamental processes underlying vicarious learning:
observation of actions (learning what they do) vs. belief sharing (learning
what they think). The analysis of our model points to three key insights.
First, vicarious learning through either process is beneficial even when no
agent in a system of vicarious learners begins with a knowledge advantage.
Second, vicarious learning through belief sharing is not universally better
than mutual observation of actions and outcomes. Specifically, enabling mutual
observability of actions and outcomes is superior to sharing of beliefs when
the task environment features few alternatives with large differences in their
value and there are no time pressures. Third, symmetry in vicarious learning in
fact adversely affects belief sharing but improves observational learning. All
three results are shown to be the consequence of how vicarious learning affects
self-confirming biased beliefs.
