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Same process, different outcomes: group performance in an acquiring a company experiment

Listed author(s):
  • Marco Casari

    (University of Bologna)

  • Jingjing Zhang

    ()

    (University of Technology Sydney)

  • Christine Jackson

    (Purdue University)

Registered author(s):

    Abstract It is still an open question when groups perform better than individuals in intellective tasks. We report that in an Acquiring a Company game, what prevailed when there was disagreement among group members was the median proposal and not the best proposal. This aggregation rule explains why groups underperformed with respect to a “truth wins” benchmark and why they performed better than individuals deciding in isolation in a simple version of the task but worse in the more difficult version. Implications are drawn on when to employ groups rather than individuals in decision making.

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    File URL: http://link.springer.com/10.1007/s10683-015-9467-7
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    Article provided by Springer & Economic Science Association in its journal Experimental Economics.

    Volume (Year): 19 (2016)
    Issue (Month): 4 (December)
    Pages: 764-791

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    Handle: RePEc:kap:expeco:v:19:y:2016:i:4:d:10.1007_s10683-015-9467-7
    DOI: 10.1007/s10683-015-9467-7
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