How Groups Reach Agreement in Risky Choices: An Experiment

14 Pages Posted: 19 Apr 2012

See all articles by Jingjing Zhang

Jingjing Zhang

University of Zurich, Department of Economics

Marco Casari

University of Bologna - Department of Economics

Date Written: April 2012

Abstract

This paper studies how groups resolve disagreement in lottery choices. In an experiment, subjects submit individual proposals, exchange chat messages, and must reach unanimity. Overall, group choices are more coherent and closer to risk neutrality than individuals'. The proposal of the minority prevails in about one instance out of five. About one third of the groups do not reach immediate agreement after communication. In these groups, extrovert subjects are more likely to lead the group outcome than confused or conscientious subjects. The amount, equality, and timing of chat messages help us to predict which choice prevails in the group.

JEL Classification: C92, D81

Suggested Citation

Zhang, Jingjing and Casari, Marco, How Groups Reach Agreement in Risky Choices: An Experiment (April 2012). Economic Inquiry, Vol. 50, Issue 2, pp. 502-515, 2012. Available at SSRN: https://ssrn.com/abstract=2042375 or http://dx.doi.org/10.1111/j.1465-7295.2010.00362.x

Jingjing Zhang (Contact Author)

University of Zurich, Department of Economics ( email )

Zuerich, 8006
Switzerland

HOME PAGE: http://www.econ.uzh.ch/faculty/zhang.html

Marco Casari

University of Bologna - Department of Economics ( email )

Strada Maggiore 45
Bologna, 40125
Italy

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