The effects of group decision-making on social preferences: An experimental study

Charmaine H.Y. Tan

Journal of Economic Behavior & Organization, 2021, vol. 190, issue C, 134-153

Abstract: Group decision-making processes are often adopted to strengthen social bonds. In this paper, I study experimentally the effects of group decision-making on social preferences towards group members, while distinguishing between participation and outcome effects. I find that participation in a group decision-making process enhances kindness towards group members, irrespective of whether the decision leads to a success or a failure. Specifically, group decision-making increases the probability of allocating a higher payoff to a group member by 6 percentage points. Moreover, it lowers willingness to punish group members for perceived negative intentions, and increases charity concern, i.e., aversion towards receiving a higher payoff than group members. The positive effects of group decision-making on pro-social behavior towards group members do not spill over significantly to others outside the group. Consistent with observed behavior, subjects from decision-making groups report a stronger feeling of attachment towards group members than non-decision-making groups.

Keywords: Social preferences; Other-regarding preference; Group decision-making; Group identity (search for similar items in EconPapers)
JEL-codes: C92 D63 D70 D91 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:190:y:2021:i:c:p:134-153

DOI: 10.1016/j.jebo.2021.07.024

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