Resource title

Group decision making under vagueness

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We report results of an experiment in which participants provided certainty equivalents for 15 risky or vague (with imprecise probabilities) two-outcome gambles. Participants made their decisions in three different settings: a) individually without prior social interactions, b) individually after discussing decisions with other participants and c) in groups of three. We also manipulated the degree of payoff communality between participants: Either all group members received the same payoff resulting from a decision, or payoffs were allowed to differ depending on the outcomes of the gambles. Our results do not show a significant influence of payoff communality on either attitudes towards risk or vagueness. However, we find a significant effect of discussions with others and group decision making. Groups are more likely to make vagueness neutral decisions than individuals and individuals make more vagueness neutral decisions after discussing the decisions with others. We conclude that vagueness neutrality is a persuasive argument in group discussions which significantly affects vagueness attitudes of groups and individuals.

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en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2010/2010-79.pdf

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Copyright INSEAD. All rights reserved