Group decisions under ambiguity: Convergence to neutrality

Steffen Keck, Enrico Diecidue and David V. Budescu

Journal of Economic Behavior & Organization, 2014, vol. 103, issue C, 60-71

Abstract: This paper focuses on decisions under ambiguity. Participants in a laboratory experiment made decisions in three different settings: (a) individually, (b) individually after discussing the decisions with two others, and (c) in groups of three. We show that groups are more likely to make ambiguity-neutral decisions than individuals, and that individuals make more ambiguity-neutral decisions after discussing the decisions with others. This shift toward higher ambiguity neutrality in groups and after a group discussion is associated with a reduction in the rates of both ambiguity aversion and ambiguity seeking. We suggest that the results might be driven by effective and persuasive communication that takes place in groups.

Keywords: Ambiguity; Group decision making; Imprecision; Risk; Vagueness (search for similar items in EconPapers)
JEL-codes: C92 D71 D81 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:103:y:2014:i:c:p:60-71

DOI: 10.1016/j.jebo.2014.03.026

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