{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,2,17]],"date-time":"2026-02-17T11:52:40Z","timestamp":1771329160116,"version":"3.50.1"},"reference-count":58,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"1","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2026,1]]},"abstract":"<jats:p>We analyze statistical discrimination in hiring markets using a multiarmed bandit model. Myopic firms face workers arriving with heterogeneous observable characteristics. The association between the worker\u2019s skill and characteristics is unknown ex ante; thus, firms need to learn it. Laissez-faire causes perpetual underestimation: minority workers are rarely hired, and therefore, the underestimation tends to persist. Even a marginal imbalance in the population ratio frequently results in perpetual underestimation. We demonstrate that a subsidy rule that is implemented as temporary affirmative action effectively alleviates discrimination stemming from insufficient data.<\/jats:p>\n                  <jats:p>This paper was accepted by Nicolas Stier-Moses, Special Issue on the Human-Algorithm Connection.<\/jats:p>\n                  <jats:p>Funding: This work was supported by the Social Sciences and Humanities Research Council of Canada [Grant 430-2020-00088] and JST ERATO [Grant JPMJER2301], Japan.<\/jats:p>\n                  <jats:p>Supplemental Material: The online appendix and data files are available at https:\/\/doi.org\/10.1287\/mnsc.2022.00893 .<\/jats:p>","DOI":"10.1287\/mnsc.2022.00893","type":"journal-article","created":{"date-parts":[[2024,3,29]],"date-time":"2024-03-29T09:48:36Z","timestamp":1711705716000},"page":"442-455","source":"Crossref","is-referenced-by-count":3,"title":["On Statistical Discrimination as a Failure of Social Learning: A Multiarmed Bandit Approach"],"prefix":"10.1287","volume":"72","author":[{"ORCID":"https:\/\/orcid.org\/0000-0003-0095-6558","authenticated-orcid":false,"given":"Junpei","family":"Komiyama","sequence":"first","affiliation":[{"name":"Leonard N. 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