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Are more heads more motivated than one? The role of communication in group belief updating

Author

Listed:
  • Nina Xue

    (Department of Economics, Vienna University of Economics and Business)

  • Lata Gangadharan

    (Monash University)

  • Philip J. Grossman

    (Monash University)

Abstract

Many decisions are made by groups operating under uncertainty, with beliefs playing a critical role. However, little is known about how groups, often driven by self-serving motivations, aggregate these beliefs. In an experiment, we examine how groups form and update beliefs following communication. Belief updating in groups is more asymmetric (and pessimistic) but this asymmetry is not driven by self-serving motivations. Based on text analyses, risk is a prominent topic in discussions and we observe a self-serving bias in more risk-averse groups. Group decision making is a necessary but not sufficient condition for biased beliefs – group composition also matters.

Suggested Citation

  • Nina Xue & Lata Gangadharan & Philip J. Grossman, 2025. "Are more heads more motivated than one? The role of communication in group belief updating," Department of Economics Working Papers wuwp375, Vienna University of Economics and Business, Department of Economics.
    • Handle: RePEc:wiw:wiwwuw:wuwp375
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    More about this item

    Keywords

    belief updating; group decision making; self-serving bias; communication; 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
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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