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Individual or team decision-making--Causes and consequences of self-selection

  • Kocher, Martin
  • Strau[ss], Sabine
  • Sutter, Matthias

Even though decision-making in small teams is pervasive in business and in private life, little is known about subjects' preferences with respect to individual and team decision-making and about the consequences of respecting these preferences. We report the results from an experimental beauty-contest game, where subjects could endogenously choose their preferred way of decision-making. About 60% of subjects prefer to act in a team, and teams win the game significantly more often than individuals. Nevertheless, both individuals and team members are highly satisfied with their chosen role, but for different reasons.Even though decision-making in small teams is pervasive in business and in private life, little is known about subjects' preferences with respect to individual and team decision-making and about the consequences of respecting these preferences. We report the results from an experimental beauty-contest game, where subjects could endogenously choose their preferred way of decision-making. About 60% of subjects prefer to act in a team, and teams win the game significantly more often than individuals. Nevertheless, both individuals and team members are highly satisfied with their chosen role, but for different reasons.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 56 (2006)
Issue (Month): 2 (August)
Pages: 259-270

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Handle: RePEc:eee:gamebe:v:56:y:2006:i:2:p:259-270
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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