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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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  1. 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.
  2. Charness, Gary B & Rabin, Matthew, 2001. "Understanding Social Preferences With Simple Tests," University of California at Santa Barbara, Economics Working Paper Series qt0dc3k4m5, Department of Economics, UC Santa Barbara.
  3. Kugler, Tamar & Bornstein, Gary & Kocher, Martin G. & Sutter, Matthias, 2007. "Trust between individuals and groups: Groups are less trusting than individuals but just as trustworthy," Munich Reprints in Economics 18202, University of Munich, Department of Economics.
  4. 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.
  5. Luhan, W.J. & Kocher, Martin G. & Sutter, Matthias, 2009. "Group polarization in the team dictator game reconsidered," Munich Reprints in Economics 18216, University of Munich, Department of Economics.
  6. 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.
  7. Götte, Lorenz & Huffman, David B. & Meier, Stephan, 2006. "The Impact of Group Membership on Cooperation and Norm Enforcement: Evidence using Random Assignment to Real Social Groups," IZA Discussion Papers 2020, Institute for the Study of Labor (IZA).
  8. Matthias Sutter, 2008. "Individual behavior and group membership: Comment," Jena Economic Research Papers 2008-075, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  9. 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.
  10. Charness, Gary B & Haruvy, Ernan, 1999. "Altruism, Equity, And Reciprocity In A Gift-Exchange Experiment: An Encompassing Approach," University of California at Santa Barbara, Economics Working Paper Series qt01n8x8m3, Department of Economics, UC Santa Barbara.
  11. 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.
  12. 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.
  13. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
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  15. Kocher, Martin & Matthias Sutter, 2003. "Individual versus group behavior and the role of the decision making procedure in gift-exchange experiments," Royal Economic Society Annual Conference 2003 125, Royal Economic Society.
  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. Charness, Gary, 2000. "Responsibility and effort in an experimental labor market," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 375-384, July.
  18. Gary Charness, 2004. "Attribution and Reciprocity in an Experimental Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 665-688, July.
  19. Gary Bornstein & Ilan Yaniv, 1998. "Individual and Group Behavior in the Ultimatum Game: Are Groups More “Rational†Players?," Experimental Economics, Springer, vol. 1(1), pages 101-108, June.
  20. Kfir Eliaz & Debraj Ray, 2004. "Choice Shifts in Groups," Econometric Society 2004 North American Summer Meetings 205, Econometric Society.
  21. Yan Chen & Sherry Xin Li, 2009. "Group Identity and Social Preferences," American Economic Review, American Economic Association, vol. 99(1), pages 431-57, March.
  22. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
  23. Georg Kirchsteiger & Ernst Fehr & Arno Riedl, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," ULB Institutional Repository 2013/5927, ULB -- Universite Libre de Bruxelles.
  24. Solow, John L. & Kirkwood, Nicole, 2002. "Group identity and gender in public goods experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 48(4), pages 403-412, August.
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