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Is diversity in capabilities desirable when adding decision makers?

Author

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  • Ruth Ben-Yashar

    (Bar Ilan University)

  • Shmuel Nitzan

    (Bar Ilan University
    Hitotsubashi University)

Abstract

When the benefit of making a correct decision is sufficiently high, even a slight increase in the probability of making such a decision justifies an increase in the number of decision makers. Applying a standard uncertain dichotomous choice benchmark setting, this study focuses on the relative desirability of two alternatives: adding individuals with capabilities identical to the existing ones and adding identical individuals with mean-preserving capabilities that depend on the states of nature. Our main result establishes that when the group applies the simple majority rule, variability in the capabilities of the new decision makers under the two states of nature, which is commonly observed in various decision-making settings, is less desirable in terms of the probability of making the correct decision.

Suggested Citation

  • Ruth Ben-Yashar & Shmuel Nitzan, 2017. "Is diversity in capabilities desirable when adding decision makers?," Theory and Decision, Springer, vol. 82(3), pages 395-402, March.
    • Handle: RePEc:kap:theord:v:82:y:2017:i:3:d:10.1007_s11238-016-9570-z
    DOI: 10.1007/s11238-016-9570-z
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    References listed on IDEAS

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    6. Eyal Baharad & Ruth Ben-Yashar, 2009. "The robustness of the optimal weighted majority rule to probability distortion," Public Choice, Springer, vol. 139(1), pages 53-59, April.
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    9. Ruth Ben-Yashar & Igal Milchtaich, 2007. "First and second best voting rules in committees," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 29(3), pages 453-486, October.
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    Cited by:

    1. Ronen Bar-El & Mordechai E. Schwarz, 2021. "A Talmudic constrained voting majority rule," Public Choice, Springer, vol. 189(3), pages 465-491, December.
    2. Ruth Ben‐Yashar & Miriam Krausz & Shmuel Nitzan, 2018. "Government loan guarantees and the credit decision‐making structure," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(2), pages 607-625, May.
    3. Baharad, Eyal & Ben-Yashar, Ruth & Patal, Tal, 2020. "On the merit of non-specialization in the context of majority voting," Journal of Mathematical Economics, Elsevier, vol. 87(C), pages 128-133.
    4. Steve Alpern & Bo Chen, 2020. "Optimizing Voting Order on Sequential Juries: A Median Voter Theorem and Beyond," Papers 2006.14045, arXiv.org, revised Oct 2021.
    5. Steve Alpern & Bo Chen, 2022. "Optimizing voting order on sequential juries: a median voter theorem and beyond," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(3), pages 527-565, April.

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