Are Decisions Made by Group Representatives More Risk Averse? The Effect of Sense of Responsibility. (27th November 2017)

• Record Type: Journal Article
• Authors: Wang, Zuo‐Jun; Kuang, Yi; Tang, Hui‐Yi; Gao, Cong; Chen, Ai; Chan, Kai Qin
• Is Part Of: Journal of behavioral decision making. Volume 31:Number 3(2018)
• Page Start: 311
• Page End: 323
• Publication Date: 2017-11-27
• Subjects: group representative decision -- sense of responsibility -- risk aversion -- others‐concern motivation; Decision making -- Periodicals; Managerial economics -- Periodicals; Behavior -- Periodicals; Decision Making -- Periodicals; Prise de décision -- Périodiques; Économie d'entreprise -- Périodiques; 153.83
• DOI: 10.1002/bdm.2057
• Languages: English
• ISSNs: 0894-3257

Abstract

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.