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Individual and group preferences over risk: does group size matter?

Morone, Andrea and Temerario, Tiziana and Nemore, Francesco (2017): Individual and group preferences over risk: does group size matter?

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Abstract

In this paper we investigated group size impact on risk aversion when a majority rule is applied. Drawing on the widely used Holt and Laury’s (2002) lottery pairs, we observed a risky shift for both individual and groups regardless of their size. However, groups choices are shown to be closer to the risk-neutrality prediction. More interestingly, whereas smaller groups attitudes can be safely approximated by individual choices, larger groups reveal a statistically different risk-loving attitude. This risky shift becomes more prominent as group size increases.

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