Risk taking and information aggregation in groups

Arbeitspapier

We report a controlled laboratory experiment examining risk-taking and information aggregation in groups facing a common risk. The experiment allows us to examine how subjects respond to new information, in the form of both privately observed signals and signals reported from others. We find that a considerable number of subjects exhibit 'reverse confirmation bias': they place less weight on information from others that agrees with their private signal and more weight on conflicting information. We also find a striking degree of consensus when subjects make decisions on behalf of the group under a random dictatorship procedure. Reverse confirmation bias and the incidence of consensus are considerably reduced when group members can share signals but not communicate.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CeDEx Discussion Paper Series ; No. 2015-07

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Design of Experiments: Laboratory, Group Behavior ; Social Choice; Clubs; Committees; Associations ; Information, Knowledge, and Uncertainty: General
• Subject: Group behavior ; Teams ; Decision Making ; Risk ; Experiment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bougheas, Spiros ; Nieboer, Jeroen ; Sefton, Martin
• Event: Veröffentlichung
• (who): The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
• (where): Nottingham
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/129819
• Last update: 10.03.2025, 11:43 AM CET