Risk taking and information aggregation in groups
We report a controlled laboratory experiment examining risk-taking and information aggregation in groups facing a common risk. The experiment allows us to examine how subjects respond to new information, in the form of both privately observed signals and signals reported from others. We find that a...
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| Format: | Article |
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Elsevier
2015
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| Online Access: | https://eprints.nottingham.ac.uk/29801/ |
| _version_ | 1848793855162318848 |
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| author | Bougheas, Spiros Nieboer, Jeroen Sefton, Martin |
| author_facet | Bougheas, Spiros Nieboer, Jeroen Sefton, Martin |
| author_sort | Bougheas, Spiros |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We report a controlled laboratory experiment examining risk-taking and information aggregation in groups facing a common risk. The experiment allows us to examine how subjects respond to new information, in the form of both privately observed signals and signals reported from others. We find that a considerable number of subjects exhibit ‘reverse confirmation bias’: they place less weight on information from others that agrees with their private signal and more weight on conflicting information. We also find a striking degree of consensus when subjects make decisions on behalf of the group under a random dictatorship procedure. Reverse confirmation bias and the incidence of consensus are considerably reduced when group members can share signals but not communicate. |
| first_indexed | 2025-11-14T19:06:55Z |
| format | Article |
| id | nottingham-29801 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:06:55Z |
| publishDate | 2015 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-298012020-05-04T17:15:26Z https://eprints.nottingham.ac.uk/29801/ Risk taking and information aggregation in groups Bougheas, Spiros Nieboer, Jeroen Sefton, Martin We report a controlled laboratory experiment examining risk-taking and information aggregation in groups facing a common risk. The experiment allows us to examine how subjects respond to new information, in the form of both privately observed signals and signals reported from others. We find that a considerable number of subjects exhibit ‘reverse confirmation bias’: they place less weight on information from others that agrees with their private signal and more weight on conflicting information. We also find a striking degree of consensus when subjects make decisions on behalf of the group under a random dictatorship procedure. Reverse confirmation bias and the incidence of consensus are considerably reduced when group members can share signals but not communicate. Elsevier 2015-08-08 Article PeerReviewed Bougheas, Spiros, Nieboer, Jeroen and Sefton, Martin (2015) Risk taking and information aggregation in groups. Journal of Economic Psychology, 51 . pp. 34-47. ISSN 0167-4870 Group Behavior Teams Decision Making Risk Experiment http://www.sciencedirect.com/science/article/pii/S0167487015000999 doi:10.1016/j.joep.2015.08.001 doi:10.1016/j.joep.2015.08.001 |
| spellingShingle | Group Behavior Teams Decision Making Risk Experiment Bougheas, Spiros Nieboer, Jeroen Sefton, Martin Risk taking and information aggregation in groups |
| title | Risk taking and information aggregation in groups |
| title_full | Risk taking and information aggregation in groups |
| title_fullStr | Risk taking and information aggregation in groups |
| title_full_unstemmed | Risk taking and information aggregation in groups |
| title_short | Risk taking and information aggregation in groups |
| title_sort | risk taking and information aggregation in groups |
| topic | Group Behavior Teams Decision Making Risk Experiment |
| url | https://eprints.nottingham.ac.uk/29801/ https://eprints.nottingham.ac.uk/29801/ https://eprints.nottingham.ac.uk/29801/ |