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Collective Intertemporal Decisions and Heterogeneity in Groups

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  • Glätzle-Rützler, Daniela

    (University of Innsbruck)

  • Lergetporer, Philipp

    (Technical University of Munich)

  • Sutter, Matthias

    (Max Planck Institute for Research on Collective Goods)

Abstract

Many important intertemporal decisions are made by groups rather than individuals. What happens to collective decisions when there is internal conflict about the tradeoff between present and future has not been thoroughly investigated so far. We study experimentally the causal effect of group members' heterogeneous payoffs from waiting on intertemporal choices. We find that three-person groups behave more patiently than individuals. This effect stems from the presence of at least one group member with a high payoff from waiting. We analyze additional treatments, group chat content, and survey data to uncover the mechanism through which heterogeneity in groups increases patience.

Suggested Citation

  • Glätzle-Rützler, Daniela & Lergetporer, Philipp & Sutter, Matthias, 2021. "Collective Intertemporal Decisions and Heterogeneity in Groups," IZA Discussion Papers 14025, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14025
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    3. Ayala Arad & Kevin P. Grubiak & Stefan P. Penczynski, 2024. "Does communicating within a team influence individuals’ reasoning and decisions?," Experimental Economics, Springer;Economic Science Association, vol. 27(1), pages 109-129, March.

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    More about this item

    Keywords

    patience; time preferences; group decisions; payoff heterogeneity; 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
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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