Comparing Small‐Group and Individual Behavior in Lottery‐Choice Experiments
By R. J. Baker, S. Laury, Arlington Williams. Southern Economic Journal, 2007
139 citations recorded by the source corpus.
Lottery-choice experiments are conducted to compare risk preferences revealed by three-person groups versus isolated individuals. A lottery-choice experiment consists of a menu of paired lottery choices structured so that the crossover point from a low-risk to a high-risk lottery can be used to infer the degree of risk aversion. A between-subjects experiment of group versus individual lottery-choice decisions reveal that there is not a significant difference in the average crossover point, but lottery choices are affected by a significant interaction between subject composition (individual or group) and lottery winning percentage. Also, a three-phased individual-group-individual sequenced experiment reveals that the count of safe lotteries chosen by groups is, on average, significantly greater than the mean of the individual members. Finally, making a phase-two group decision has a significant impact on subsequent phase-three individual decisions relative to the initial phase-one (individual) decisions.
Subfields: Economics and Econometrics, General Decision Sciences, Safety Research
View Paper: https://www.semanticscholar.org/paper/2c4e2943295280b2e82a733653886ffd26932eb3
Citations in the corpus
- Deciding to Decide: Gender, Leadership and Risk-Taking in Groups (2010, unknown): “Baker et al. (2007) find a similar result.”
- A Reconsideration of Gender Differences in Risk Attitudes (2016, unknown): “The list includes Anderson and Freeborn (2010); Carlsson et al. (2012) in the field, and Andersen et al. (2006); Baker et al. (2008); Chakravarty et al. (2011); Drichoutis and Koundouri (2012); Eckel and Wilson (2004); Ehmke et al. (2010); Harrison et al. (2013); Houser et al. (2010); Mueller and…”
- Group and individual risk preferences : a lottery-choice experiment (2006, unknown): “of 10), Baker et al. (2004) observe the same phenomena as Shupp and Williams (2003).”