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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Individual vs. Group Decision Making
T2 - an Experiment on Dynamic Choice under Risk and Ambiguity
AU - Carbone, Enrica
AU - Georgalos, Konstantinos
AU - Infante, Gerardo
N1 - The final publication is available at Springer via https://doi.org/10.1007/s11238-019-09694-8
PY - 2019/7/1
Y1 - 2019/7/1
N2 - This paper focuses on the comparison of individual and group decision making, in a stochastic inter-temporal problem in two decision environments, namely risk and ambiguity. Using a consumption/saving laboratory experiment, we investigate behaviour in four treatments: (1) individual choice under risk; (2) group choice under risk; (3) individual choice under ambiguity and (4) group choice under ambiguity. Comparing decisions within and between decision environments, we find an anti-symmetric pattern. While individuals are choosing on average closer to the theoretical optimal predictions, compared to groups in the risk treatments, groups tend to deviate less under ambiguity. Within decisionenvironments, individuals deviate more when they choose under ambiguity, while groups are better planners under ambiguity rather than under risk. Our results extend the often observed pattern of individuals (groups) behaving more optimally under risk (ambiguity), to its dynamic dimension.
AB - This paper focuses on the comparison of individual and group decision making, in a stochastic inter-temporal problem in two decision environments, namely risk and ambiguity. Using a consumption/saving laboratory experiment, we investigate behaviour in four treatments: (1) individual choice under risk; (2) group choice under risk; (3) individual choice under ambiguity and (4) group choice under ambiguity. Comparing decisions within and between decision environments, we find an anti-symmetric pattern. While individuals are choosing on average closer to the theoretical optimal predictions, compared to groups in the risk treatments, groups tend to deviate less under ambiguity. Within decisionenvironments, individuals deviate more when they choose under ambiguity, while groups are better planners under ambiguity rather than under risk. Our results extend the often observed pattern of individuals (groups) behaving more optimally under risk (ambiguity), to its dynamic dimension.
KW - risk
KW - ambiguity
KW - Inter-temporal Optimisation
KW - Group Decision Making
KW - learning
KW - experiment
U2 - 10.1007/s11238-019-09694-8
DO - 10.1007/s11238-019-09694-8
M3 - Journal article
VL - 87
SP - 87
EP - 122
JO - Theory and Decision
JF - Theory and Decision
SN - 0040-5833
ER -