Individual and group preferences over risk: Does group size matter?
Andrea Morone (),
Francesco Nemore () and
EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels
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)
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp, nep-rmg and nep-upt
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Working Paper: Individual and group preferences over risk: does group size matter? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eei:rpaper:eeri_rp_2017_12
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