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Sequential Sampling by Individuals and Groups: An Experimental Study

Author

Listed:
  • Pëllumb Reshidi
  • Alessandro Lizzeri
  • Leeat Yariv
  • Jimmy Chan
  • Wing Suen

Abstract

Many committees—juries, political task forces, etc.—spend time gathering costly information before reaching a decision. We report results from lab experiments focused on such dynamic information-collection processes, as in sequential hypothesis testing. We consider decisions governed by individuals and groups and compare how voting rules affect outcomes. Several insights emerge. First, average decision accuracies approximate those predicted theoretically, but these accuracies decline over time: Participants display nonstationary behavior. Second, groups generate markedly different outcomes than individuals, with majority rule yielding faster and less accurate decisions. In particular, welfare is higher when sequential information is collected in groups using unanimity.

Suggested Citation

  • Pëllumb Reshidi & Alessandro Lizzeri & Leeat Yariv & Jimmy Chan & Wing Suen, 2025. "Sequential Sampling by Individuals and Groups: An Experimental Study," American Economic Review: Insights, American Economic Association, vol. 7(4), pages 480-496, December.
    • Handle: RePEc:aea:aerins:v:7:y:2025:i:4:p:480-96
    DOI: 10.1257/aeri.20240055
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    References listed on IDEAS

    as
    1. Uri Gneezy & Jan Potters, 1997. "An Experiment on Risk Taking and Evaluation Periods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 631-645.
    2. Ben Gillen & Erik Snowberg & Leeat Yariv, 2019. "Experimenting with Measurement Error: Techniques with Applications to the Caltech Cohort Study," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1826-1863.
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    More about this item

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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