Are groups better planners than individuals? An experimental analysis

Carbone, Enrica and Infante, Gerardo (2015) Are groups better planners than individuals? An experimental analysis. Journal of Behavioral and Experimental Economics, 57. pp. 112-119.

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Abstract

We present the results of an experiment comparing group and individual planning in the domain of lifecycle consumption/saving decisions. Individual decision making is compared to two group treatments, which differ based on the presence of a rematching rule. We find that individuals and groups differ in how they solve the intertemporal consumption problem, but not in how they improve their consumption planning within a sequence. Individuals’ performance improves across sequences, groups without rematching perform approximately the same, while groups with rematching do significantly worse. Our main finding is that while groups perform better than individuals in the first sequence, this difference seems to disappear in the second lifecycle. Results show that in the second sequence groups in the rematching treatment deviate substantially more from optimum than groups that are left stable across sequences.

Item Type: Article
Uncontrolled Keywords: collective decision making,intertemporal consumer choice,life-cycle,risk,experimental economics,economics, econometrics and finance (miscellaneous) ,/dk/atira/pure/subjectarea/asjc/2000/2001
Faculty \ School: Faculty of Social Sciences > School of Economics
Depositing User: Pure Connector
Date Deposited: 24 Jul 2015 23:56
Last Modified: 25 Jul 2018 10:53
URI: https://ueaeprints.uea.ac.uk/id/eprint/53763
DOI: 10.1016/j.socec.2015.04.006

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