HYPOTHETICAL VS ACTUAL GROUP RISK TAKING AND THE VALUE OF RISK IN A COMPLEX DECISION MAKING ENVIRONMENT.
Abstract
Many studies in the last ten years have indicated that groups take greater risks than individuals. The most common method for studying this effect consists of two steps. First, the subjects are asked to make individual decisions on a series of problems in which it is possible to take greater or lesser risk. Second, they are placed in a group situation and required to discuss the same problems, and usually to make a group decision. The difference between the group decision and the mean level of risk taken initially by the individuals is termed a shift. Since the group decision is usually riskier than the mean of the individual decisions, a risky shift is said to have occurred. The risky-shift effect is also often shown in a comparison between the mean level of risk taken initially by the individuals and the mean level of risk taken by the same individuals following a group discussion of the problems. The document presents a quantity of data on the phenomenon. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1969
- Accession Number
- AD0709449
Entities
People
- Kenneth L. Higbee
Organizations
- Purdue University