How Groups Reach Agreement In Risky Choices: An Experiment
This paper studies how groups resolve disagreement in lottery choices. In an experiment, subjects submit individual proposals, exchange chat messages, and must reach unanimity. Overall, group choices are more coherent and closer to risk neutrality than individuals’. The proposal of the minority prevails in about one instance out of five. About one third of the groups do not reach immediate agreement after communication. In these groups, extrovert subjects are more likely to lead the group outcome than confused or conscientious subjects. The amount, equality and timing of chat messages help us to predict which choice prevails in the group.
(This abstract was borrowed from another version of this item.)
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 50 (2012)
Issue (Month): 2 (04)
|Contact details of provider:|| Postal: 18830 Brookhurst Street, Suite 304, Fountain Valley, CA 92708 USA|
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0095-2583
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0095-2583|
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.:
- Robert S. Shupp & Arlington Williams, 2003.
"Risk Preference Differentials of Small Groups and Individuals,"
200301, Ball State University, Department of Economics, revised Apr 2006.
- RobertS. Shupp & ArlingtonW. Williams, 2008. "Risk preference differentials of small groups and individuals," Economic Journal, Royal Economic Society, vol. 118(525), pages 258-283, 01.
- Martin G. Kocher & Matthias Sutter, 2004.
"The Decision Maker Matters: Individual versus Group Behaviour in Experimental Beauty-Contest Games,"
Papers on Strategic Interaction
2004-09, Max Planck Institute of Economics, Strategic Interaction Group.
- Martin G. Kocher & Matthias Sutter, 2005. "The Decision Maker Matters: Individual Versus Group Behaviour in Experimental Beauty-Contest Games," Economic Journal, Royal Economic Society, vol. 115(500), pages 200-223, 01.
- Kocher, Martin G. & Sutter, Matthias, 2005. "The decision maker matters: Individual versus group behaviour in experimental beauty-contest games," Munich Reprints in Economics 18213, University of Munich, Department of Economics.
- Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2008.
"Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments,"
Southern Economic Journal,
Southern Economic Association, vol. 75(2), pages 367-382, October.
- Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2007. "Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments," Caepr Working Papers 2007-018, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- Ronald J. Baker II & Susan K. Laury & Arlington W. Williams, 2008. "Comparing Small-Group and Individual Behavior in Lottery-Choice Experiments," Caepr Working Papers 2007-018_Updated, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- Bettina Kuon & Abdolkarim Sadrieh & Barbara Mathauschek, 1999.
"Teams Take the Better Risks,"
Discussion Paper Serie B
452, University of Bonn, Germany.
- Sutter, Matthias, 2005.
"Are four heads better than two? An experimental beauty-contest game with teams of different size,"
Elsevier, vol. 88(1), pages 41-46, July.
- Matthias Sutter, 2004. "Are four heads better than two? An experimental beauty-contest game with teams of different size," Papers on Strategic Interaction 2004-15, Max Planck Institute of Economics, Strategic Interaction Group.
- Gillet, Joris & Schram, Arthur & Sonnemans, Joep, 2009. "The tragedy of the commons revisited: The importance of group decision-making," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 785-797, June.
- Isaac, R Mark & Walker, James M, 1988. "Communication and Free-Riding Behavior: The Voluntary Contribution Mechanism," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 585-608, October.
- Charness, Gary B & Karni, Edi, 2007.
"Individual and Group Decision Making Under Risk: An Experimental Study of Bayesian Updating and Violations of First-order Stochastic Dominance,"
University of California at Santa Barbara, Economics Working Paper Series
qt4gr7j8z8, Department of Economics, UC Santa Barbara.
- Gary Charness & Edi Karni & Dan Levin, 2007. "Individual and group decision making under risk: An experimental study of Bayesian updating and violations of first-order stochastic dominance," Journal of Risk and Uncertainty, Springer, vol. 35(2), pages 129-148, October.
- James C. Cox & Stephen C. Hayne, .
"Barking Up the Right Tree: Are Small Groups Rational Agents?,"
Experimental Economics Center Working Paper Series
2006-02, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- James Cox & Stephen Hayne, 2006. "Barking up the right tree: Are small groups rational agents?," Experimental Economics, Springer, vol. 9(3), pages 209-222, September.
- Cason, Timothy N & Mui, Vai-Lam, 1997. "A Laboratory Study of Group Polarisation in the Team Dictator Game," Economic Journal, Royal Economic Society, vol. 107(444), pages 1465-83, September.
- David J. Cooper & John H. Kagel, 2005. "Are Two Heads Better Than One? Team versus Individual Play in Signaling Games," American Economic Review, American Economic Association, vol. 95(3), pages 477-509, June.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Hackett Steven & Schlager Edella & Walker James, 1994. "The Role of Communication in Resolving Commons Dilemmas: Experimental Evidence with Heterogeneous Appropriators," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 99-126, September.
- Laughlin, Patrick R. & Bonner, Bryan L. & Miner, Andrew G., 2002. "Groups perform better than the best individuals on Letters-to-Numbers problems," Organizational Behavior and Human Decision Processes, Elsevier, vol. 88(2), pages 605-620, July.
When requesting a correction, please mention this item's handle: RePEc:bla:ecinqu:v:50:y:2012:i:2:p:502-515. 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: (Christopher F. Baum)
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.