How groups reach agreement in risky choices: an experiment
AbstractThis paper studies how groups resolve disagreement when they must reach unanimity after submitting individual proposals and exchanging text-form messages via a chat window in lottery choice experiments. We find that the majority proposal does not always prevail. The minority proposal prevails sometimes, especially when it is closer to risk neutrality. About one third of the groups disagrees after communication and would have got zero payoffs if disagreement remains after two more attempts without communication. In these groups, extrovert subjects are more likely to lead the group outcome than confused or conscientious subjects. Overall group choices are more coherent and closer to risk neutrality than individualsÕ. Checking the recorded messages, we find that the chat activity is intense, growing with the level of disagreement and aims at finding consensus. The amount and timing of chat messages help us to predict which choice prevails in the group.
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Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 2009-08.
Length: 29 pages
Date of creation: Sep 2009
Date of revision:
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More information through EDIRC
Risk Attitude; Group Decision Making; Communication; Experiments;
Other versions of this item:
- Jingjing Zhang & Marco Casari, 2012. "How Groups Reach Agreement In Risky Choices: An Experiment," Economic Inquiry, Western Economic Association International, vol. 50(2), pages 502-515, 04.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-26 (All new papers)
- NEP-CBE-2009-09-26 (Cognitive & Behavioural Economics)
- NEP-EXP-2009-09-26 (Experimental Economics)
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.:
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