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Why do groups cooperate more than individuals to reduce risks?

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  • Min Gong
  • Jonathan Baron
  • Howard Kunreuther

Abstract

Previous research has discovered a curious phenomenon: groups cooperate less than individuals in a deterministic prisoner’s dilemma game, but cooperate more than individuals when uncertainty is introduced into the game. We conducted two studies to examine three possible processes that might drive groups to be more cooperative than individuals in reducing risks: group risk concern, group cooperation expectation, and pressure to conform to social norms. We found that ex post guilt aversion and ex-post blame avoidance cause group members to be more risk concerned than individuals under uncertainty. These concerns drive groups to choose the cooperation (and risk-reduction) strategy more frequently than individuals. Groups also have higher cooperation expectations for their corresponding groups than individuals have for their corresponding individuals. We found no evidence of pressure to conform to social norms driving groups to be more cooperative than individuals. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Min Gong & Jonathan Baron & Howard Kunreuther, 2013. "Why do groups cooperate more than individuals to reduce risks?," Theory and Decision, Springer, vol. 75(1), pages 101-116, July.
    • Handle: RePEc:kap:theord:v:75:y:2013:i:1:p:101-116
    DOI: 10.1007/s11238-012-9318-3
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    References listed on IDEAS

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    1. Charness, Gary & Jackson, Matthew O., 2009. "The role of responsibility in strategic risk-taking," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 241-247, March.
    2. Charness, Gary & Dufwenberg, Martin, 2003. "Promises & Partnership," Research Papers in Economics 2003:3, Stockholm University, Department of Economics.
    3. W. Kip Viscusi & Wesley A. Magat & Joel Huber, 1987. "An Investigation of the Rationality of Consumer Valuations of Multiple Health Risks," RAND Journal of Economics, The RAND Corporation, vol. 18(4), pages 465-479, Winter.
    4. Min Gong & Jonathan Baron & Howard Kunreuther, 2009. "Group cooperation under uncertainty," Journal of Risk and Uncertainty, Springer, vol. 39(3), pages 251-270, December.
    5. Gary Charness & Martin Dufwenberg, 2006. "Promises and Partnership," Econometrica, Econometric Society, vol. 74(6), pages 1579-1601, November.
    6. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
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    Cited by:

    1. Ahsanuzzaman, & Priyo, Asad Karim Khan & Nuzhat, Kanti Ananta, 2022. "Effects of communication, group selection, and social learning on risk and ambiguity attitudes: Experimental evidence from Bangladesh," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    2. March, Christoph, 2021. "Strategic interactions between humans and artificial intelligence: Lessons from experiments with computer players," Journal of Economic Psychology, Elsevier, vol. 87(C).
    3. Ahsanuzzaman, & Palm-Forster, Leah H. & Suter, Jordan F., 2022. "Experimental evidence of common pool resource use in the presence of uncertainty," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 139-160.

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    More about this item

    Keywords

    Group decision; Uncertainty; Risk; Cooperation; Experimental economics; Interdependent security; D81;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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