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Group Versus Individual Decision-Making: Is there a shift?

Listed author(s):
  • Attila Ambrus

    ()

    (Department of Economics, Harvard University)

  • Ben Greiner

    ()

    (School of Economics, University of New South Wales)

  • Parag Pathak

    ()

    (Department of Economics, MIT)

We revisit the phenomenon that group decisions differ systematically from decisions of individuals. Our experiment solicits individual and group decisions from the same subjects in two settings, gift-exchange games and lottery choices. With no deliberation and voting, the group decision is determined by the median individual decision, without a shift. With deliberation but no imposed decision rule, the individual one po- sition towards the selfish direction also becomes influential. In lottery choices we find no group shift relative to the median. We demonstrate that the standard practice of comparing means of group and individual decisions would incorrectly identify a level shift.

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File URL: http://www.sss.ias.edu/publications/papers/econpaper91.pdf
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Paper provided by Institute for Advanced Study, School of Social Science in its series Economics Working Papers with number 0091.

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Length: 37 pages
Date of creation: May 2009
Handle: RePEc:ads:wpaper:0091
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