Arbeitspapier

Defaults, Normative Anchors and the Occurrence of Risky and Cautious Shifts

Choice shifts occur when individuals advocate a risky (safe) decision when acting as part of a group even though they prefer a safe (risky) decision when acting as individuals. Even though research in psychology and economics has produced a mass of evidence on this puzzling phenomenon, there is no agreement about which mechanism produces choice shifts. In an experiment, we investigate the performance of two prominent mechanisms that have been proposed to explain the phenomenon; (i) rank-dependent utility and (ii) a desire to conform to the wishes of the majority. The evidence provides clear support for the conformity explanation.

Language
Englisch

Bibliographic citation
Series: Tinbergen Institute Discussion Paper ; No. 17-083/I

Classification
Wirtschaft
Social Choice; Clubs; Committees; Associations
Criteria for Decision-Making under Risk and Uncertainty
Subject
risky shift
cautious shift
conformity
diffusion of responsibility
rank-dependent utility

Event
Geistige Schöpfung
(who)
Jagau, Stephan
Offerman, Theo
Event
Veröffentlichung
(who)
Tinbergen Institute
(where)
Amsterdam and Rotterdam
(when)
2017

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Jagau, Stephan
  • Offerman, Theo
  • Tinbergen Institute

Time of origin

  • 2017

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