Show simple item record

Risky Investment Decisions: How Are Individuals Influenced by Their Groups?

dc.contributor.authorViscusi, W. Kip
dc.contributor.authorPhillips, Owen R.
dc.contributor.authorKroll, Stephan (Economist)
dc.identifier.citation43 Journal of Risk and Uncertainty 81 (2011)en_US
dc.descriptionArticle published in a journal of theoretical and empirical papers that analyze risk-bearing behavior and decision-making under uncertainty.en_US
dc.description.abstractWe investigate the effect of group versus individual decision-making in the context of risky investment decisions in which all subjects are fully informed of the probabilities and payoffs. Although there is full information, the lottery choices pose cognitive challenges so that people may not be sure of their expected utility-maximizing choice. Making such decisions in a group context provides real-time information in which group members can observe others’ choices and revise their own decisions. Our experimental results show that simply observing what others in the group do has a significant impact on behavior. Coupling real-time information with group decisions based on the median value, i.e., majority rule, makes the median investment choice focal, leading people with low values to increase investments and those with high values decrease investments. Group decisions based on the minimum investment amount produce more asymmetric effects.en_US
dc.format.extent1 PDF (51 pages)en_US
dc.publisherJournal of Risk and Uncertaintyen_US
dc.subject.lcshGroup decision makingen_US
dc.subject.lcshInvestments -- Decision makingen_US
dc.subject.lcshRisk-taking (Psychology)en_US
dc.titleRisky Investment Decisions: How Are Individuals Influenced by Their Groups?en_US

Files in this item


This item appears in the following Collection(s)

Show simple item record