Individual and group preferences over risk: does group size matter?

Andrea Morone, Tiziana Temerario and Francesco Nemore

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we investigated group size impact on risk aversion when a majority rule is applied. Drawing on the widely used Holt and Laury’s (2002) lottery pairs, we observed a risky shift for both individual and groups regardless of their size. However, groups choices are shown to be closer to the risk-neutrality prediction. More interestingly, whereas smaller groups attitudes can be safely approximated by individual choices, larger groups reveal a statistically different risk-loving attitude. This risky shift becomes more prominent as group size increases.

Keywords: Preferences; Group; Risk Attitude; Majority Rule; Laboratory. (search for similar items in EconPapers)
JEL-codes: C91 C92 D1 (search for similar items in EconPapers)
Date: 2017-11
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Individual and group preferences over risk: Does group size matter? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:82453

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