The Impact of Gender Composition on Team Performance and Decision Making: Evidence from the Field
We investigate whether the gender composition of teams affects their economic performance. We study a large business game, played in groups of three, in which each group takes the role of a general manager. There are two parallel competitions, one involving undergraduates and the other involving MBA students. Our analysis shows that teams formed by three women are significantly outperformed by all other gender combinations, both at the undergraduate and MBA levels. Looking across the performance distribution, we find that for undergraduates, three-women teams are outperformed throughout, but by as much as 0.47 of a standard deviation of the mean at the bottom and by only 0.09 at the top. For MBA students, at the top, the best performing group is two men and one woman. The differences in performance are explained by differences in decision making. We observe that three-women teams are less aggressive in their pricing strategies, invest less in research and development, and invest more in social sustainability initiatives than does any other gender combination. This paper was accepted by Brad Barber, Teck Ho, and Terrance Odean, special issue editors.
Volume (Year): 58 (2012)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
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.:
- Charness, Gary & Jackson, Matthew O., 2007.
"Group play in games and the role of consent in network formation,"
Journal of Economic Theory,
Elsevier, vol. 136(1), pages 417-445, September.
- Gary Charness & Matthew O. Jackson, 2004. "Group Play in Games and the Role of Consent in Network Formation," Levine's Bibliography 122247000000000213, UCLA Department of Economics.
- Charness, Gary B & Jackson, Matthew O., 2006. "Group Play in Games and the Role of Consent in Network Formation," University of California at Santa Barbara, Economics Working Paper Series qt3wd3q7qz, Department of Economics, UC Santa Barbara.
- Matthew Jackson & Gary Charness, 2004. "Group Play in Games and the Role of Consent in Network Formation," Econometric Society 2004 North American Summer Meetings 654, Econometric Society.
- Charness, Gary & Jackson, Matthew O., 2004. "Group Play in Games and the Role of Consent in Network Formation," Working Papers 1193, California Institute of Technology, Division of the Humanities and Social Sciences.
- Adams, Renée B. & Ferreira, Daniel, 2009. "Women in the boardroom and their impact on governance and performance," Journal of Financial Economics, Elsevier, vol. 94(2), pages 291-309, November.
- Natalia Zinovyeva & Manuel F. Bagues, 2010.
"Does gender matter for academic promotion? Evidence from a randomized natural experiment,"
- Zinovyeva, Natalia & Bagues, Manuel F., 2011. "Does Gender Matter for Academic Promotion? Evidence from a Randomized Natural Experiment," IZA Discussion Papers 5537, Institute for the Study of Labor (IZA).
- Aldo Rustichini & Uri Gneezy, 2004.
"Gender and competition at a young age,"
Framed Field Experiments
00151, The Field Experiments Website.
- Andreoni,J. & Vesterlund,L., 1998.
"Which is the fair sex? : Gender differences in altruism,"
10, Wisconsin Madison - Social Systems.
- James Andreoni & Lise Vesterlund, 2001. "Which is the Fair Sex? Gender Differences in Altruism," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 293-312.
- Andreoni, James & Vesterlund, Lise, 2001. "Which is the Fair Sex? Gender Differences in Altruism," Staff General Research Papers 1951, Iowa State University, Department of Economics.
- Muriel Niederle & Lise Vesterlund, 2007.
"Do Women Shy Away From Competition? Do Men Compete Too Much?,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 122(3), pages 1067-1101.
- Muriel Niederle & Lise Vesterlund, 2005. "Do Women Shy Away From Competition? Do Men Compete Too Much?," NBER Working Papers 11474, National Bureau of Economic Research, Inc.
- Muriel Niederle & Lise Vesterlund, 2005. "Do Women Shy Away from Competition? Do Men Compete too Much?," Discussion Papers 04-030, Stanford Institute for Economic Policy Research.
- 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.
- Alan Manning & Joanna Swaffield, 2005.
"The Gender Gap in Early Career Wage Growth,"
CEP Discussion Papers
dp0700, Centre for Economic Performance, LSE.
- Nancy Buchan & Rachel Croson, 1999. "Gender and Culture: International Experimental Evidence from Trust Games," American Economic Review, American Economic Association, vol. 89(2), pages 386-391, May.
- Josse Delfgaauw & Robert Dur & Joeri Sol & Willem Verbeke, 2013.
"Tournament Incentives in the Field: Gender Differences in the Workplace,"
Journal of Labor Economics,
University of Chicago Press, vol. 31(2), pages 305 - 326.
- Delfgaauw, Josse & Dur, Robert & Sol, Joeri & Verbeke, Willem, 2009. "Tournament Incentives in the Field: Gender Differences in the Workplace," IZA Discussion Papers 4395, Institute for the Study of Labor (IZA).
- Josse Delfgaauw & Robert Dur & Joeri Sol & Willem Verbeke, 2009. "Tournament Incentives in the Field: Gender Differences in the Workplace," Tinbergen Institute Discussion Papers 09-069/1, Tinbergen Institute, revised 20 Apr 2012.
- Farrell, Kathleen A. & Hersch, Philip L., 2005. "Additions to corporate boards: the effect of gender," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 85-106, March.
- Charness, Gary B & Gneezy, Uri, 2007. "Strong Evidence for Gender Differences in Investment," University of California at Santa Barbara, Economics Working Paper Series qt428481s8, Department of Economics, UC Santa Barbara.
- Andrew Healy & Jennifer Pate, 2011. "Can Teams Help to Close the Gender Competition Gap?," Economic Journal, Royal Economic Society, vol. 121(555), pages 1192-1204, 09.
- Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, vol. 108(448), pages 726-35, May.
- Uri Gneezy & Muriel Niederle & Aldo Rustichini, 2003. "Performance in Competitive Environments: Gender Differences," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 1049-1074.
- Goldin, Claudia D. & Bertrand, Marianne & Katz, Lawrence F., 2010.
"Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors,"
8810041, Harvard University Department of Economics.
- Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 228-55, July.
- David A. Carter & Betty J. Simkins & W. Gary Simpson, 2003. "Corporate Governance, Board Diversity, and Firm Value," The Financial Review, Eastern Finance Association, vol. 38(1), pages 33-53, 02.
- Bolton, Gary E. & Katok, Elena, 1995. "An experimental test for gender differences in beneficent behavior," Economics Letters, Elsevier, vol. 48(3-4), pages 287-292, June.
- Manuel F. Bagues & Berta Esteve-Volart, 2010.
"Can Gender Parity Break the Glass Ceiling? Evidence from a Repeated Randomized Experiment,"
Review of Economic Studies,
Oxford University Press, vol. 77(4), pages 1301-1328.
- Manuel F. Bagüés & Berta Esteve-Volart, 2007. "Can gender parity break the glass ceiling? Evidence from a repeated randomized experiment," Working Papers 2007-15, FEDEA.
- Houser, Daniel & Schunk, Daniel, 2009. "Social environments with competitive pressure: Gender effects in the decisions of German schoolchildren," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 634-641, August.
- Grant Miller, 2008. "Women's Suffrage, Political Responsiveness, and Child Survival in American History," The Quarterly Journal of Economics, Oxford University Press, vol. 123(3), pages 1287-1327.
- Dufwenberg, Martin & Muren, Astri, 2006. "Gender composition in teams," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 50-54, September.
- Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:58:y:2012:i:1:p:78-93. 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: (Mirko Janc)
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.