Risk Taking and Information Aggregation in Groups

July 23, 2014

Spiros Bougheas, Jeroen Nieboer and Martin Sefton report an experiment examining risk taking and information aggregation in groups in CeDEx Working Paper 2014-09. Group members come to the table with an individual preference for a choice under risk, based on privately received information, and can share this information with fellow group members.  They then make a decision under risk …