Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7243815 | Journal of Economic Behavior & Organization | 2013 | 11 Pages |
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 risk-taking 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.
Related Topics
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Authors
Spiros Bougheas, Jeroen Nieboer, Martin Sefton,