EconPapers    
Economics at your fingertips  
 

Defaults, normative anchors, and the occurrence of risky and cautious shifts

Stephan Jagau () and Theo Offerman
Additional contact information
Theo Offerman: University of Amsterdam

Journal of Risk and Uncertainty, 2018, vol. 56, issue 3, 211-236

Abstract: Abstract Choice shifts occur when individuals advocate a risky (safe) decision when acting as part of a group even though they prefer a safe (risky) decision when acting as individuals. Even though research in psychology and economics has produced a mass of evidence on this puzzling phenomenon, there is no agreement about which mechanism produces choice shifts. In an experiment, we investigate the performance of two prominent mechanisms that have been proposed to explain the phenomenon; (i) rank-dependent utility and (ii) a desire to conform to the wishes of the majority. The evidence provides clear support for the conformity explanation.

Keywords: Risky shift; Cautious shift; Conformity; Social responsibility; Rank-dependent utility; Peer effects; Group decision making; D03; D71; D81 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11166-018-9282-6 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Defaults, Normative Anchors and the Occurrence of Risky and Cautious Shifts (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jrisku:v:56:y:2018:i:3:d:10.1007_s11166-018-9282-6

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11166/PS2

Access Statistics for this article

Journal of Risk and Uncertainty is currently edited by W. Kip Viscusi

More articles in Journal of Risk and Uncertainty from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-04-07
Handle: RePEc:kap:jrisku:v:56:y:2018:i:3:d:10.1007_s11166-018-9282-6