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Does consultation improve decision making?

Author

Listed:
  • Alessia Isopi

    (School of Economics, University of Nottingham)

  • Daniele Nosenzo

    (School of Economics, University of Nottingham)

  • Chris Starmer

    (School of Economics, University of Nottingham)

Abstract

This paper reports an experiment designed to test whether prior consultation within a group affects subsequent individual decision making in tasks where demonstrability of correct solutions is low. In our experiment subjects considered two paintings created by two different artists and were asked to guess which artist made each painting. We observed answers given by individuals under two treatments: in one, subjects were allowed the opportunity to consult with other participants before making their private decisions; in the other there was no such opportunity. Our primary findings are that subjects in the first treatment evaluate the opportunity to consult positively but they perform significantly worse and earn significantly less.

Suggested Citation

  • Alessia Isopi & Daniele Nosenzo & Chris Starmer, 2011. "Does consultation improve decision making?," Discussion Papers 2011-08, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2011-08
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    File URL: https://www.nottingham.ac.uk/cedex/documents/papers/2011-08.pdf
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    Cited by:

    1. Montero, Maria & Sheth, Jesal D., 2021. "Naivety about hidden information: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 92-116.
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    3. Charness, Gary & Cooper, David & Grossman, Zachary, 2015. "Silence is Golden: Communication Costs and Team Problem Solving," University of California at Santa Barbara, Economics Working Paper Series qt3n25b620, Department of Economics, UC Santa Barbara.
    4. Cheng, Kuo-Tai, 2016. "Test of the mediating effects of regulatory decision tools in the communications regulator," Telecommunications Policy, Elsevier, vol. 40(2), pages 277-289.

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    More about this item

    Keywords

    Consultation; Decision making; Group decisions; Individual decisions;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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