The Effect of Intragroup Communication on Preference Shifts in Groups

39 Pages Posted: 23 May 2008

See all articles by Steven Y. Wu

Steven Y. Wu

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics; IZA Institute of Labor Economics

Date Written: April 2008

Abstract

We use a laboratory gift-exchange game to examine decisions made by groups under three different procedures that dictate how group members interact and reach decisions in comparison to individuals acting alone. We find that group decisions do deviate from those of individuals, but the direction and magnitude of gift exchange depend critically on the procedure. This suggests that no general statements can be made concerning the propensity of groups to exhibit reciprocal or other-regarding behavior relative to individuals. The rules governing how group members can express their preferences and expectations to other group members are critical for determining group outcomes.

Keywords: group behavior, teams, decision making, social preferences

JEL Classification: C91, C92

Suggested Citation

Wu, Steven Yu-Ping, The Effect of Intragroup Communication on Preference Shifts in Groups (April 2008). IZA Working Paper No. 3429, Available at SSRN: https://ssrn.com/abstract=1136234 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Steven Yu-Ping Wu (Contact Author)

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

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