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Group decisions under ambiguity: Convergence to neutrality

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

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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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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References

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Cited by:
  1. M. Vittoria Levati & Stefan Napel & Ivan Soraperra, 2014. "Collective choices under ambiguity," Jena Economic Research Papers 2014-019, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Bougheas, Spiros & Nieboer, Jeroen & Sefton, Martin, 2013. "Risk-taking in social settings: Group and peer effects," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 92(C), pages 273-283.

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