Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129819
Authors: 
Bougheas, Spiros
Nieboer, Jeroen
Sefton, Martin
Year of Publication: 
2015
Series/Report no.: 
CeDEx Discussion Paper Series 2015-07
Abstract: 
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.
Subjects: 
Group behavior
Teams
Decision Making
Risk
Experiment
JEL: 
C91
C92
D71
D80
Document Type: 
Working Paper

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