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Individual and Group Preferences Over Risk: An Experiment

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  • Morone, Andrea
  • Temerario, Tiziana

Abstract

The recent literature on individual and group choices over risk has led to different results. In some studies under unanimity, groups were found to be less risk averse than individuals, while those under majority did not highlight significant differences. However, both the types of studies impose the decision rule to the group. In the present work we elicited groups' preference under risk using a consensus rule, i.e. groups are free to solve disagreement endogenously, just as in the real life. Results from our pairwise choices experiment shows that when group members are free to use any rule they want in order to reach unanimity, there is no statistical difference between individuals' and groups' risk aversion.

Suggested Citation

  • Morone, Andrea & Temerario, Tiziana, 2016. "Individual and Group Preferences Over Risk: An Experiment," EconStor Preprints 148357, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:148357
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    References listed on IDEAS

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    1. Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2008. "Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments," Southern Economic Journal, John Wiley & Sons, vol. 75(2), pages 367-382, October.
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    1. Zonna, Davide, 2016. "Sprechi di cibo e tentativi di riduzione. Un caso sperimentale [Avoiding food waste. A field experiment]," MPRA Paper 76097, University Library of Munich, Germany.

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    More about this item

    Keywords

    Group Preferences; Risk; Individual Preferences; Lab;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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