Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/177651
Authors: 
Jagau, Stephan
Offerman, Theo
Year of Publication: 
2017
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 17-083/I
Abstract: 
Choice shifts occur when individuals advocate a risky (safe) decision when acting as part of a group even though they prefer a safe (risky) decision when acting as individuals. Even though research in psychology and economics has produced a mass of evidence on this puzzling phenomenon, there is no agreement about which mechanism produces choice shifts. In an experiment, we investigate the performance of two prominent mechanisms that have been proposed to explain the phenomenon; (i) rank-dependent utility and (ii) a desire to conform to the wishes of the majority. The evidence provides clear support for the conformity explanation.
Subjects: 
risky shift
cautious shift
conformity
diffusion of responsibility
rank-dependent utility
JEL: 
D03
D71
D81
Document Type: 
Working Paper

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