When Do Groups Perform Better than Individuals? A Company Takeover Experiment

Marco Casari, Jingjing Zhang and C. Jackson

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: It is still an open question when groups will perform better than individuals in intellectual tasks.We report that in a company takeover experiment, groups placed better bids than individuals and substantially reduced the winner s curse. This improvement was mostly due to peer pressure over the minority opinion and to group learning. Learning took place from interacting and negotiating consensus with others, not simply from observing their bids. When there was disagreement within a group, what prevailed was not the best proposal but the one of the majority. Groups underperformed with respect to a truth wins benchmark although they outperformed individuals deciding in isolation.

JEL-codes: C91 C92 D03 D81 (search for similar items in EconPapers)
Date: 2011-06
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Working Paper: When do groups perform better than individuals? A company takeover experiment (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bol:bodewp:wp763

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