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Preference Communication and Leadership in Group Decision-Making

Author

Listed:
  • Seda Ertac

    () (Department of Economics, Koc University)

  • Mehmet Y. Gurdal

    () (Department of Economics, Bogazici University)

Abstract

We report results from a laboratory experiment that explores the effects of preference communication and leader selection mechanisms in group decision-making. In a setting where all members of a group get the same payoff based on the group leader’s decision of how much risk to take, we study the effects of two treatment variables: (1) whether group members can communicate their preferences to the leader, (2) whether the leader is exogenously appointed or voluntarily self-selects into the position. We find that the leader selection mechanism crucially affects the integration of group preferences into the leader’s decision: the communicated preferences have a significant effect on the actual group decision only when the leader is appointed. We also find that preference communication by non-leaders is frequently strategic.

Suggested Citation

  • Seda Ertac & Mehmet Y. Gurdal, 2013. "Preference Communication and Leadership in Group Decision-Making," Koç University-TUSIAD Economic Research Forum Working Papers 1324, Koc University-TUSIAD Economic Research Forum.
  • Handle: RePEc:koc:wpaper:1324
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    File URL: http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1324.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Alan, Sule & Ertac, Seda & Kubilay, Elif & Lóránth, Gyöngyi, 2016. "Understanding Gender Differences in Leadership," CEPR Discussion Papers 11596, C.E.P.R. Discussion Papers.
    2. İriş, Doruk, 2017. "Representation and Social Regret in Risk-Taking," MPRA Paper 77008, University Library of Munich, Germany.

    More about this item

    Keywords

    group decision-making; risk; leadership; delegation; advice; information; experiments.;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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