Abstract

This paper investigates the behavior of contestants in the game show “Quiz Taxi” when faced with the decision whether to bet the winnings they have acquired on a final “double or nothing” question. The decision in this natural experiment is made by groups of two or three persons. This setup enables the decision-making process to be studied with regard to group and communication characteristics. The contestants show fairly risk averse behavior. There is also a significant heterogeneity in attitude to risk. In particular, all-female groups are much less likely to go for the risky option. Furthermore, decision-making behavior appears to vary across differently composed groups and prior performance. The study also documents the importance of discussions: The propensity to gamble increases with discussion length, and the correlation between communication content and the final choice is strong, indicating that time and subjective context are important features of decisions made under risk