Advanced Search
MyIDEAS: Login

Are Two Heads Better Than One?: An Experimental Analysis of Group vs. Individual Decisionmaking

Contents:

Author Info

  • Alan S. Blinder

    (Princeton University)

  • John Morgan

    (Princeton University)

Abstract

We report the results of two sets of experiments comparing decisions made as individuals to those made in groups under majority and unanimity rule. The first setup posed a purely statistical problem devoid of any economic content: Subjects were asked to guess the composition of an (electronic) urn filled with blue balls and red balls. The second mimicked the problem faced by central bankers: Subjects were asked to steer an (electronic model of an) economy by manipulating the interest rate. The results were both striking and strikingly consistent. Neither experiment supported the commonly-held belief that groups make decisions more slowly than individuals. Both experiments found that groups, on average, made better decisions than individuals. Surprisingly, groups outperformed individuals by almost exactly the same margin in each experiment. Finally, there were practically no differences between group decisions made by majority rule and group decisions made under a unanimity requirement.

Download Info

If 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.
File URL: http://www.princeton.edu/ceps/workingpapers/70blinder.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Princeton University, Department of Economics, Center for Economic Policy Studies. in its series Working Papers with number 130.

as in new window
Length:
Date of creation: May 2001
Date of revision:
Handle: RePEc:pri:cepsud:70blinder

Contact details of provider:
Postal: Princeton, NJ 08544-1021
Phone: (609) 258-5765
Fax: (609) 258-5398
Email:
Web page: http://www.princeton.edu/~ceps/index.htm
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Glenn Rudebusch & Lars E.O. Svensson, 1999. "Policy Rules for Inflation Targeting," NBER Chapters, in: Monetary Policy Rules, pages 203-262 National Bureau of Economic Research, Inc.
  2. Laurence Ball, 1997. "Efficient rules for monetary policy," Reserve Bank of New Zealand Discussion Paper Series G97/3, Reserve Bank of New Zealand.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pri:cepsud:70blinder. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Long).

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.