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Are Decisions Made by Group Representatives More Risk Averse? The Effect of Sense of Responsibility
Author(s) -
Wang ZuoJun,
Kuang Yi,
Tang HuiYi,
Gao Cong,
Chen Ai,
Chan Kai Qin
Publication year - 2018
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/bdm.2057
Subject(s) - blame , stochastic game , social psychology , psychology , group (periodic table) , domain (mathematical analysis) , economics , microeconomics , chemistry , organic chemistry , mathematical analysis , mathematics
Abstract We tested the hypothesis that a sense of responsibility drives group representatives' decisions to be more risk averse compared with decisions made by individuals. The hypothesis was supported when the monetary considerations (i.e., payoff inequality and the magnitude effect) were controlled for in the potential gain domain as well as in the potential loss domain. Evidence showed that this is because the group representatives were concerned about how they would view themselves (e.g., guilt and self‐blame) and also how they would be viewed by others (i.e., to avoid being blamed and looked down upon by others). This study provided new insights into understanding group representatives' decision making under risk. Copyright © 2017 John Wiley & Sons, Ltd.