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The aggregation of preferences in groups: Identity, responsibility, and polarization

  • Brady, Michael P.
  • Wu, Steven Y.

In this paper, we use laboratory experiments to investigate how group identity and team decision-making processes might impact economic decisions. Our primary aim is to move the literature closer to an integrated model of group decision making through the use of an experimental design that carefully examines group identity and team decision making in isolation and in combination. We find that both the direction and magnitude of the group deviation relative to individual decisions depends critically on group communication and decision-making structure. In total, results are best explained by the concept of responsibility-alleviation.

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Article provided by Elsevier in its journal Journal of Economic Psychology.

Volume (Year): 31 (2010)
Issue (Month): 6 (December)
Pages: 950-963

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Handle: RePEc:eee:joepsy:v:31:y:2010:i:6:p:950-963
Contact details of provider: Web page: http://www.elsevier.com/locate/joep

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  12. Charness, Gary & Haruvy, Ernan, 2002. "Altruism, equity, and reciprocity in a gift-exchange experiment: an encompassing approach," Games and Economic Behavior, Elsevier, vol. 40(2), pages 203-231, August.
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  14. 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.
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  16. Gary Charness & Luca Rigotti & Aldo Rustichini, 2007. "Individual Behavior and Group Membership," American Economic Review, American Economic Association, vol. 97(4), pages 1340-1352, September.
  17. Matthias Sutter, 2009. "Individual Behavior and Group Membership: Comment," American Economic Review, American Economic Association, vol. 99(5), pages 2247-57, December.
  18. Yan Chen & Sherry Xin Li, 2009. "Group Identity and Social Preferences," American Economic Review, American Economic Association, vol. 99(1), pages 431-57, March.
  19. Kocher, Martin G. & Sutter, Matthias, 2007. "Individual versus group behavior and the role of the decision making procedure in gift-exchange experiments," Munich Reprints in Economics 18214, University of Munich, Department of Economics.
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  23. Charness, Gary B & Jackson, Matthew O., 2007. "The Role of Responsibility in Strategic Risk-Taking," University of California at Santa Barbara, Economics Working Paper Series qt2mk4p42w, Department of Economics, UC Santa Barbara.
  24. George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
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