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The intrinsic value of decision rights: A replication and an extension to team decision making

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  • Buffat, Justin
  • Praxmarer, Matthias
  • Sutter, Matthias

Abstract

We present a replication of Bartling et al. (2014) who developed an experiment to measure the intrinsic value of decision rights. We can confirm their seminal results for individuals with remarkable accuracy, thus strongly confirming the prior of a robust result. Motivated by the observation that team decision making is ubiquitous, we then extend their design by studying how teams value decision rights. In the aggregate, we find no differences between individuals and teams. However, in our exploratory analysis, we uncover an important heterogeneity: teams with a smooth decision making process have much lower intrinsic values of decision rights than individuals, but teams with internal conflicts have much higher values, thus distorting decisions.

Suggested Citation

  • Buffat, Justin & Praxmarer, Matthias & Sutter, Matthias, 2023. "The intrinsic value of decision rights: A replication and an extension to team decision making," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 560-571.
    • Handle: RePEc:eee:jeborg:v:209:y:2023:i:c:p:560-571
    DOI: 10.1016/j.jebo.2023.03.019
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    2. Feldhaus, Christoph & Lingens, Jörg & Löschel, Andreas & Zunker, Gerald, 2024. "The intrinsic value of decision rights: Field evidence from electricity contract choice automation," Resource and Energy Economics, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    Decision rights; Intrinsic value; Team decision making; Experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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