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The effects of group decision-making on social preferences: An experimental study

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  • Tan, Charmaine H.Y.

Abstract

Group decision-making processes are often adopted to strengthen social bonds. In this paper, I study experimentally the effects of group decision-making on social preferences towards group members, while distinguishing between participation and outcome effects. I find that participation in a group decision-making process enhances kindness towards group members, irrespective of whether the decision leads to a success or a failure. Specifically, group decision-making increases the probability of allocating a higher payoff to a group member by 6 percentage points. Moreover, it lowers willingness to punish group members for perceived negative intentions, and increases charity concern, i.e., aversion towards receiving a higher payoff than group members. The positive effects of group decision-making on pro-social behavior towards group members do not spill over significantly to others outside the group. Consistent with observed behavior, subjects from decision-making groups report a stronger feeling of attachment towards group members than non-decision-making groups.

Suggested Citation

  • Tan, Charmaine H.Y., 2021. "The effects of group decision-making on social preferences: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 134-153.
    • Handle: RePEc:eee:jeborg:v:190:y:2021:i:c:p:134-153
    DOI: 10.1016/j.jebo.2021.07.024
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    More about this item

    Keywords

    Social preferences; Other-regarding preference; Group decision-making; Group identity;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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