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The Effect of Intragroup Communication on Preference Shifts in Groups

Author

Listed:
  • Brady, Michael P.

    (U.S. Department of Agriculture)

  • Wu, Steven Y.

    (Purdue University)

Abstract

We use a laboratory gift-exchange game to examine decisions made by groups under three different procedures that dictate how group members interact and reach decisions in comparison to individuals acting alone. We find that group decisions do deviate from those of individuals, but the direction and magnitude of gift exchange depend critically on the procedure. This suggests that no general statements can be made concerning the propensity of groups to exhibit reciprocal or other-regarding behavior relative to individuals. The rules governing how group members can express their preferences and expectations to other group members are critical for determining group outcomes.

Suggested Citation

  • Brady, Michael P. & Wu, Steven Y., 2008. "The Effect of Intragroup Communication on Preference Shifts in Groups," IZA Discussion Papers 3429, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3429
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    References listed on IDEAS

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    1. Roman Sheremeta & Jingjing Zhang, 2010. "Can groups solve the problem of over-bidding in contests?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 35(2), pages 175-197, July.

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    More about this item

    Keywords

    social preferences; group behavior; teams; decision making;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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