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Effect of uncertainty on risk taking in individual and group decisions
Author(s) -
Marquis Donald G.,
Reitz H. Joseph
Publication year - 1969
Publication title -
behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 0005-7940
DOI - 10.1002/bs.3830140403
Subject(s) - group (periodic table) , psychology , value (mathematics) , social psychology , econometrics , actuarial science , economics , statistics , mathematics , chemistry , organic chemistry
Experimental gambling situations were used to test (1) the effects of uncertainty on individuals' willingness to take risk and (2) the effects of group discussion under conditions of positive, zero, and negative expected value. In all three experimental conditions individuals risked less money under uncertainty. The comparison of group with individual decisions showed results consistent with a model which proposes that group discussion enhances prior expected values and also results in a risk bias effect when uncertainty is present.