EconPapers    
Economics at your fingertips  
 

Are Two Heads Better than One? Monetary Policy by Committee

Alan Blinder and John Morgan

Journal of Money, Credit and Banking, 2005, vol. 37, issue 5, 789-811

Abstract: Two experiments were conducted to test the common hypothesis that groups make decisions more slowly than individuals. One of these experiments imitates real-life monetary policy decisions. In both cases, the hypothesis is found wanting: groups are not slower than individuals. In both experiments, we also find that group decisions are on average better than individual decisions. This holds regardless of whether the groups make decisions by unanimity or majority rule. Simple mechanical theories of group decisionmaking--that the group follows its average player, median player, or best player--do not explain the results. Group interactions seem to matter.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (201) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:mcb:jmoncb:v:37:y:2005:i:5:p:789-811

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().

 
Page updated 2022-09-14
Handle: RePEc:mcb:jmoncb:v:37:y:2005:i:5:p:789-811