Individual vs. group decision-making: an experiment on dynamic choice under risk and ambiguity

Theory and Decision 87 (1):87-122 (2019)
  Copy   BIBTEX

Abstract

This paper focuses on the comparison of individual and group decision-making, in a stochastic inter-temporal problem in two decision environments, namely risk and ambiguity. Using a consumption/saving laboratory experiment, we investigate behaviour in four treatments: individual choice under risk; group choice under risk; individual choice under ambiguity and group choice under ambiguity. Comparing decisions within and between decision environments, we find an anti-symmetric pattern. While individuals are choosing on average closer to the theoretical optimal predictions, compared to groups in the risk treatments, groups tend to deviate less under ambiguity. Within decision environments, individuals deviate more when they choose under ambiguity, while groups are better planners under ambiguity rather than under risk. Our results extend the often observed pattern of individuals behaving more optimally under risk, to its dynamic dimension.

Other Versions

No versions found

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 99,666

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Dynamic Choice, Independence and Emotions.Astrid Hopfensitz & Frans Winden - 2008 - Theory and Decision 64 (2-3):249-300.

Analytics

Added to PP
2019-03-06

Downloads
22 (#908,073)

6 months
4 (#1,165,876)

Historical graph of downloads
How can I increase my downloads?