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Individual and group preferences over risk: Does group size matter?

Andrea Morone (), Francesco Nemore () and Tiziana Temerario

EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels

Abstract: In this paper we investigated group size impact on risk aversion when a majority rule is applied. Drawing on the widely used Holt and Laury’s (2002) lottery pairs, we observed a risky shift for both individual and groups regardless of their size. However, groups choices are shown to be closer to the risk-neutrality prediction. More interestingly, whereas smaller groups attitudes can be safely approximated by individual choices, larger groups reveal a statistically different risk-loving attitude. This risky shift becomes more prominent as group size increases.

Keywords: Preferences; Group; Risk Attitude; Majority Rule; Laboratory. (search for similar items in EconPapers)
JEL-codes: C91 C92 D01 (search for similar items in EconPapers)
Date: 2017-11-12
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp, nep-rmg and nep-upt
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