The Needs of the Many, the Wealth of the Few: How Responsibility Affects Decision-Making for Others

9 Pages Posted: 3 Sep 2024

See all articles by Georgia E. Buckle

Georgia E. Buckle

University of Portsmouth - Faculty of Business - Department of Economics

Sascha Füllbrunn

Radboud University Nijmegen - Institute for Management Research

Wolfgang J. Luhan

University of Portsmouth

Abstract

The responsibility alleviation effect that agents are more cautious for others than themselves is often cited. However, precisely what aspect of decision-making for others evokes responsibility has never been tested. We analyse two dimensions in risky decision-making for others that may amplify perceived responsibility: the number of affected principals and the investment amount agents are responsible for. In an online experiment, we systematically vary the number of principals, the investment amounts and the overall investment sum. We find no evidence that decision-makers act more cautiously when investing for more people, or with a larger total amount, but we find a significant effect of the increased endowment amounts per person. Our results suggest that responsibility effects depend mostly on the potential outcome for individuals rather than the total impact of the decision.

Keywords: decision-making for others, responsibility, risky decisions, social preferences, group size, stake size

Suggested Citation

Buckle, Georgia and Füllbrunn, Sascha and Luhan, Wolfgang J., The Needs of the Many, the Wealth of the Few: How Responsibility Affects Decision-Making for Others. Available at SSRN: https://ssrn.com/abstract=4945732 or http://dx.doi.org/10.2139/ssrn.4945732

Georgia Buckle

University of Portsmouth - Faculty of Business - Department of Economics ( email )

Portsmouth PO4 8JF
United Kingdom

Sascha Füllbrunn

Radboud University Nijmegen - Institute for Management Research ( email )

Heyendaalseweg 141
Nijmegen, 6525 AJ
Netherlands

HOME PAGE: http://www.ru.nl/english/people/fullbrunn-s/

Wolfgang J. Luhan (Contact Author)

University of Portsmouth ( email )

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