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Exploring group decision making in a power-to-take experiment

Published online by Cambridge University Press:  14 March 2025

Ronald Bosman ,
Heike Hennig-Schmidt  and
Frans van Winden
Ronald Bosman*
Affiliation:
Monetary and Economic Policy Department, De Nederlandsche Bank, Postbus 98, 1000 AB Amsterdam
Heike Hennig-Schmidt*
Affiliation:
Department of Economics, Laboratorium für experimentelle Wirtschaftsforschung, Bonn University, Adenauerallee 24-42, D-53113 Bonn, Germany
Frans van Winden*
Affiliation:
CREED/Department of Economics, University of Amsterdam, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands
*
e-mail: [email protected]
e-mail: [email protected]
e-mail: [email protected]
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Abstract

Most studies that compare individual and group behavior neglect the in-group decision making process. This paper explores the decision making process within groups in a strategic setting: a two player power-to-take experiment. Discussions preceding group decisions are video taped and analyzed. We find the following: (1) no impact of the group setting as such on individual behavior; (2) heterogeneity of individual types; (3) perceptions of fairness are hardly discussed and are prone to the self-serving bias; (4) groups ignore the decision rule of other groups and typically view them as if they were single agents. (5) We also show that to explain group outcomes two factors have to be taken into account that are often neglected: the distribution of individual types over groups and the decision rules that groups use to arrive at their decision.

Keywords

GroupsDecision ruleFairnessExperimentVideo

JEL classification

A12: Relation of Economics to Other Disciplines C91: Laboratory, Individual Behavior C92: Laboratory, Group Behavior C72: Noncooperative Games
Type
Research Article
Information
Experimental Economics , Volume 9 , Issue 1 , April 2006 , pp. 35 - 51
Copyright
Copyright © 2006 Economic Science Association

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