Which theory suggests that individuals learn new behaviors by observing the outcomes of others' behavior?

The correct answer highlights the concept that individuals can acquire new behaviors by observing others, particularly through the study of how behaviors are reinforced or punished in various situations. This understanding is central to social learning theory, which posits that observational learning plays a critical role in the development of an individual's behavior.

In social learning theory, the emphasis is placed on the process of modeling, where individuals are influenced by watching the actions of others and the results of those actions. This theory encompasses the importance of vicarious reinforcement, where individuals learn not only from their own experiences but also from witnessing the consequences that others face following their behaviors. For instance, if a person observes someone being rewarded for a specific action, they are more likely to imitate that behavior themselves, anticipating similar rewards.

By focusing on the social interactions and the impact of social contexts on learning, social learning theory helps explain a wide range of learning processes, from simple imitation to complex behavior acquisition, often without the learner having to engage in direct reinforcement or punishment themselves. This contrasts with the other theories mentioned, which do not primarily focus on observation as a primary mechanism of learning.