How groups reach agreement in risky choices: An experiment

Publication Type:
Journal Article
Citation:
Economic Inquiry, 2012, 50 (2), pp. 502 - 515
Issue Date:
2012-04-01
Full metadata record
Files in This Item:
Filename Description Size
ContentServer (8).pdfPublished Version256.33 kB
Adobe PDF
This paper studies how groups resolve disagreement in lottery choices. In an experiment, subjects submit individual proposals, exchange chat messages, and must reach unanimity. Overall, group choices are more coherent and closer to risk neutrality than individuals'. The proposal of the minority prevails in about one instance out of five. About one third of the groups do not reach immediate agreement after communication. In these groups, extrovert subjects are more likely to lead the group outcome than confused or conscientious subjects. The amount, equality, and timing of chat messages help us to predict which choice prevails in the group. © 2011 Western Economic Association International.
Please use this identifier to cite or link to this item: