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Selective Information Sharing and Group Delusion

Author

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  • Anton Suvorov

    (New Economic School, 45, Skolkovskoye Shosse, Moscow 121353, Russian Federation and National Research University Higher School of Economics, Faculty of Economic Sciences. Pokrovsky bd., 11, Suite S1039, 109028 Moscow, Russia)

  • Jeroen van de Ven

    (Tinbergen Institute and Amsterdam School of Economics, University of Amsterdam. Roetersstraat 11, 1018 WB Amsterdam, The Netherlands)

  • Marie Claire Villeval

    (CNRS, GATE, 35 rue Raulin, F-69007, Lyon, France)

Abstract

Although they usually manage to combine information to make well-informed decisions, groups also make mistakes. We investigate experimentally one source of sub-optimal decision-making by groups: the selective and asymmetric sharing of ego-relevant information within teams. We show that good news about one’s performance is shared more often with team members than bad news. Asymmetric information sharing combined with the receivers’ selection neglect boosts team confidence compared to an unbiased exchange of feedback. Consequently, weaker teams make worse investment decisions in bets whose success depends on the team’s ability. The endogenous social exchange of ego-relevant information may foster detrimental group delusion.

Suggested Citation

  • Anton Suvorov & Jeroen van de Ven & Marie Claire Villeval, 2024. "Selective Information Sharing and Group Delusion," Working Papers 2405, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:2405
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    References listed on IDEAS

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    More about this item

    Keywords

    Group Delusion; Information Disclosure; Beliefs; Skepticism; Social Image; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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