Are decisions made by group representatives more risk averse? The effect of sense of responsibility

Journal Publication ResearchOnline@JCU
Wang, Zuo-Jun;Kuang, Yi;Tang, Hui-Yi;Gao, Cong;Chen, Ai;Chan, Kai Qin
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.

Journal

Journal of Behavioral Decision Making

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Volume

31

ISBN/ISSN

1099-0771

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Issue

3

Pages Count

13

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Publisher

Wiley

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EISSN

N/A

DOI

10.1002/bdm.2057