Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100144
Authors: 
Bougheas, Spiros
Nieboer, Jeroen
Sefton, Martin
Year of Publication: 
2013
Series/Report no.: 
CeDEx Discussion Paper Series 2013-01
Abstract: 
We investigate experimentally the effect of consultation (unincentivized advice) on choices under risk in an incentivized investment task. We compare these choices to two benchmark treatments: one with isolated individual choices, and a second with group choice after communication. Our benchmarking treatments replicate earlier findings that groups take more risk than individuals in the investment task . In our consultation treatments we find evidence of peer effects: there is significant correlation of decisions within the peer group. However, average risk taking is not significantly different from the benchmark treatment with isolated individual choices. This latter result underlines the importance of payoff-commonality for bringing about higher risk-taking in groups.
Subjects: 
experimental economics
choice under risk
advice
social influence
peer effects
JEL: 
C91
C92
D71
D80
Document Type: 
Working Paper

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