The Effect of Intragroup Communication on Preference Shifts in Groups

Michael P. Brady () and Steven Wu ()
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Michael P. Brady: U.S. Department of Agriculture

No 3429, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: We use a laboratory gift-exchange game to examine decisions made by groups under three different procedures that dictate how group members interact and reach decisions in comparison to individuals acting alone. We find that group decisions do deviate from those of individuals, but the direction and magnitude of gift exchange depend critically on the procedure. This suggests that no general statements can be made concerning the propensity of groups to exhibit reciprocal or other-regarding behavior relative to individuals. The rules governing how group members can express their preferences and expectations to other group members are critical for determining group outcomes.

Keywords: group behavior; teams; decision making; social preferences (search for similar items in EconPapers)
JEL-codes: C91 C92 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-cbe, nep-cdm, nep-exp and nep-soc
Date: Written 2008-04
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