Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100142
Authors: 
Bougheas, Spiros
Nieboer, Jeroen
Sefton, Martin
Year of Publication: 
2013
Series/Report no.: 
CeDEx Discussion Paper Series 2013-04
Abstract: 
We investigate experimentally the effect of consultation (unincentivized advice) on choices under risk in an incentivized investment task. We compare consultation to two benchmark treatments: one with isolated individual choices, and a second with group choice after communication. Our benchmark treatments replicate findings that groups take more risk than individuals in the investment task; content analysis of group discussions reveals that higher risktaking in groups is positively correlated with mentions of expected value. In our consultation treatments, we find evidence of peer effects: decisions within the peer group are significantly correlated. However, average risk-taking after consultation is not significantly different from isolated individual choices. We also find that risk-taking after consultation is not affected by adding a feedback stage in which subjects see the choices of their consultation peers.
Subjects: 
experimental economics
choice under risk
advice
social influence
peer effects
JEL: 
C91
C92
D71
D80
Document Type: 
Working Paper

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