Individual Competence and Committee Decision Making: Experimental Evidence

Bryan McCannon and Paul Walker

Southern Economic Journal, 2020, vol. 86, issue 4, 1531-1558

Abstract: Committee decision making relies on the competence of its members. The individual's competence is driven by the pre‐meeting efforts. These investments constitute a public good and, consequently, free riding is a concern. We build off of previous theoretical results which point out that as committees grow in size, free riding becomes more severe. However, experimental and empirical research suggests that individuals are willing to make voluntary contributions. This motivation should lead to increased effort when the number who benefit increases. To differentiate between these hypotheses we explore experimentally the effect that changes in group size have on competence investment decisions in a committee setting. Decision problems differ by whether the expansion increases the number of voters on the committee or the number who are affected by the committee's decision. We find evidence supporting the hypothesis that as committees grow in size there is a reduction in effort invested. We find some evidence of an adverse reaction to non‐contributing beneficiaries is observed as well. Heterogeneous responses arise and are explored.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:wly:soecon:v:86:y:2020:i:4:p:1531-1558

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