Abstract

Two experiments were conducted to test the common hypothesis that groups make decisions more slowly than individuals. One of these experiments imitates real-life monetary policy decisions. In both cases, the hypothesis is found wanting: groups are not slower than individuals. In both experiments, we also find that group decisions are on average better than individual decisions. This holds regardless of whether the groups make decisions by unanimity or majority rule. Simple mechanical theories of group decisionmaking— that the group follows its average player, median player, or best player—do not explain the results. Group interactions seem to matter.

pdf

Additional Information

ISSN
1538-4616
Print ISSN
0022-2879
Pages
pp. 798-811
Launched on MUSE
2005-08-29
Open Access
No
Archive Status
Archived 2007
Back To Top

This website uses cookies to ensure you get the best experience on our website. Without cookies your experience may not be seamless.