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Group decisions under ambiguity: Convergence to neutrality

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  • Keck, Steffen
  • Diecidue, Enrico
  • Budescu, David V.
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    Abstract

    This paper focuses on decisions under ambiguity. Participants in a laboratory experiment made decisions in three different settings: (a) individually, (b) individually after discussing the decisions with two others, and (c) in groups of three. We show that groups are more likely to make ambiguity-neutral decisions than individuals, and that individuals make more ambiguity-neutral decisions after discussing the decisions with others. This shift toward higher ambiguity neutrality in groups and after a group discussion is associated with a reduction in the rates of both ambiguity aversion and ambiguity seeking. We suggest that the results might be driven by effective and persuasive communication that takes place in groups.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167268114001048
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 103 (2014)
    Issue (Month): C ()
    Pages: 60-71

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    Handle: RePEc:eee:jeborg:v:103:y:2014:i:c:p:60-71

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    Web page: http://www.elsevier.com/locate/jebo

    Related research

    Keywords: Ambiguity; Group decision making; Imprecision; Risk; Vagueness;

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