How Groups Reach Agreement In Risky Choices: An Experiment
AbstractThis paper studies how groups resolve disagreement in lottery choices. In an experiment, subjects submit individual proposals, exchange chat messages, and must reach unanimity. Overall, group choices are more coherent and closer to risk neutrality than individualsâ. The proposal of the minority prevails in about one instance out of five. About one third of the groups do not reach immediate agreement after communication. In these groups, extrovert subjects are more likely to lead the group outcome than confused or conscientious subjects. The amount, equality and timing of chat messages help us to predict which choice prevails in the group.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 50 (2012)
Issue (Month): 2 (04)
Contact details of provider:
Postal: 18830 Brookhurst Street, Suite 304, Fountain Valley, CA 92708 USA
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0095-2583
More information through EDIRC
Other versions of this item:
- Jingjing Zhang & Marco Casari, 2009. "How groups reach agreement in risky choices: an experiment," Department of Economics Working Papers 2009-08, McMaster University.
- Jingjing Zhang & Marco Casari, 2010. "How groups reach agreement in risky choices: an experiment," IEW - Working Papers 506, Institute for Empirical Research in Economics - University of Zurich.
- M. Casari & J. Zhang, 2009. "How groups reach agreement in risky choices: an experiment," Working Papers 665, Dipartimento Scienze Economiche, Universita' di Bologna.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cason, Timothy N & Mui, Vai-Lam, 1997. "A Laboratory Study of Group Polarisation in the Team Dictator Game," Economic Journal, Royal Economic Society, vol. 107(444), pages 1465-83, September.
- David J. Cooper & John H. Kagel, 2005. "Are Two Heads Better Than One? Team versus Individual Play in Signaling Games," American Economic Review, American Economic Association, vol. 95(3), pages 477-509, June.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- RobertS. Shupp & ArlingtonW. Williams, 2008.
"Risk preference differentials of small groups and individuals,"
Royal Economic Society, vol. 118(525), pages 258-283, 01.
- Robert S. Shupp & Arlington Williams, 2003. "Risk Preference Differentials of Small Groups and Individuals," Working Papers 200301, Ball State University, Department of Economics, revised Apr 2006.
- Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2008.
"Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments,"
Caepr Working Papers
2007-018_Updated, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2008. "Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 367-382, October.
- Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2007. "Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments," Caepr Working Papers 2007-018, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- Gary Charness & Edi Karni & Dan Levin, 2007.
"Individual and group decision making under risk: An experimental study of Bayesian updating and violations of first-order stochastic dominance,"
Journal of Risk and Uncertainty,
Springer, vol. 35(2), pages 129-148, October.
- Charness, Gary B & Karni, Edi, 2007. "Individual and Group Decision Making Under Risk: An Experimental Study of Bayesian Updating and Violations of First-order Stochastic Dominance," University of California at Santa Barbara, Economics Working Paper Series qt4gr7j8z8, Department of Economics, UC Santa Barbara.
- Rockenbach, Bettina & Sadrieh, Abdolkarim & Mathauschek, Barbara, 2007.
"Teams take the better risks,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 63(3), pages 412-422, July.
- James C. Cox & Stephen C. Hayne, .
"Barking Up the Right Tree: Are Small Groups Rational Agents?,"
Experimental Economics Center Working Paper Series
2006-02, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- James Cox & Stephen Hayne, 2006. "Barking up the right tree: Are small groups rational agents?," Experimental Economics, Springer, vol. 9(3), pages 209-222, September.
- Laughlin, Patrick R. & Bonner, Bryan L. & Miner, Andrew G., 2002. "Groups perform better than the best individuals on Letters-to-Numbers problems," Organizational Behavior and Human Decision Processes, Elsevier, vol. 88(2), pages 605-620, July.
- Isaac, R Mark & Walker, James M, 1988. "Communication and Free-Riding Behavior: The Voluntary Contribution Mechanism," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 585-608, October.
- Matthias Sutter, 2004.
"Are four heads better than two? An experimental beauty-contest game with teams of different size,"
Papers on Strategic Interaction
2004-15, Max Planck Institute of Economics, Strategic Interaction Group.
- Sutter, Matthias, 2005. "Are four heads better than two? An experimental beauty-contest game with teams of different size," Economics Letters, Elsevier, vol. 88(1), pages 41-46, July.
- Gillet, Joris & Schram, Arthur & Sonnemans, Joep, 2009. "The tragedy of the commons revisited: The importance of group decision-making," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 785-797, June.
- Kocher, Martin G. & Sutter, Matthias, 2005.
"The decision maker matters: Individual versus group behaviour in experimental beauty-contest games,"
Munich Reprints in Economics
18213, University of Munich, Department of Economics.
- Martin G. Kocher & Matthias Sutter, 2005. "The Decision Maker Matters: Individual Versus Group Behaviour in Experimental Beauty-Contest Games," Economic Journal, Royal Economic Society, vol. 115(500), pages 200-223, 01.
- Martin G. Kocher & Matthias Sutter, 2004. "The Decision Maker Matters: Individual versus Group Behaviour in Experimental Beauty-Contest Games," Papers on Strategic Interaction 2004-09, Max Planck Institute of Economics, Strategic Interaction Group.
- Hackett Steven & Schlager Edella & Walker James, 1994. "The Role of Communication in Resolving Commons Dilemmas: Experimental Evidence with Heterogeneous Appropriators," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 99-126, September.
- Bliss, Richard T. & Potter, Mark E. & Schwarz, Christopher, 2012. "Decision making and risk aversion in the Cash Cab," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 163-173.
- Roman M. Sheremeta & Jingjing Zhang, 2009.
"Can Groups Solve the Problem of Over-Bidding in Contests,"
09-09, Chapman University, Economic Science Institute.
- Roman Sheremeta & Jingjing Zhang, 2010. "Can groups solve the problem of over-bidding in contests?," Social Choice and Welfare, Springer, vol. 35(2), pages 175-197, July.
- Roman M. Sheremeta & Jingjing Zhang, 2009. "Can Groups Solve the Problem of Overbidding in Contests?," Department of Economics Working Papers 2009-05, McMaster University.
- Sheremeta, Roman & Zhang, Jingjing, 2009. "Can Groups Solve the Problem of Over-Bidding in Contests?," MPRA Paper 49885, University Library of Munich, Germany.
- Daniela Di Cagno & Emanuela Sciubba & Marco Spallone, 2012. "Choosing a gambling partner: testing a model of mutual insurance in the lab," Theory and Decision, Springer, vol. 72(4), pages 537-571, April.
- Kugler, Tamar & Kausel, E.E. & Kocher, Martin G., 2012.
"Are groups more rational than individuals? A review of interactive decision making in groups,"
Munich Reprints in Economics
18215, University of Munich, Department of Economics.
- Tamar Kugler & Edgar E. Kausel & Martin G. Kocher, 2012. "Are Groups more Rational than Individuals? A Review of Interactive Decision Making in Groups," CESifo Working Paper Series 3701, CESifo Group Munich.
- Antonio FILIPPIN & Paolo CROSETTO, 2014.
"A Reconsideration of Gender Differences in Risk Attitudes,"
Departmental Working Papers
2014-01, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Filippin, A. & Crosetto, P., 2014. "A reconsideration of gender differences in risk attitudes," Working Papers 2014-01, Grenoble Applied Economics Laboratory (GAEL).
- Jingjing Zhang, 2012. "Communication in asymmetric group competition over public goods," ECON - Working Papers 069, Department of Economics - University of Zurich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.