IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v38y2017i7p1033-1045.html
   My bibliography  Save this article

Risk Aversion, the Disposition Effect, and Group Decision Making: An Experimental Analysis

Author

Listed:
  • Wlademir R. Prates
  • Newton C.A. Costa Jr.
  • Anderson Dorow

Abstract

This article reports a laboratory experiment comparing the behavior of individuals and groups in terms of their susceptibility to the disposition effect. A total of 174 students took part in six experimental sessions in which they made decisions individually, in pairs, or in three‐person groups. It was observed that the disposition effect was attenuated when the decisions were made in groups of two or three members. It was also noted that the attenuating effect of group decision making was the result of a reduction in the proportion of gains realized, indicating that the groups were less risk averse than individuals. Copyright © 2017 John Wiley & Sons, Ltd.

Suggested Citation

  • Wlademir R. Prates & Newton C.A. Costa Jr. & Anderson Dorow, 2017. "Risk Aversion, the Disposition Effect, and Group Decision Making: An Experimental Analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(7), pages 1033-1045, October.
    • Handle: RePEc:wly:mgtdec:v:38:y:2017:i:7:p:1033-1045
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaohong Yu & Zhaoyang Sun, 2022. "The company they keep: When and why Chinese judges engage in collegiality," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 19(4), pages 936-1002, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:38:y:2017:i:7:p:1033-1045. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.