The Effects of Group Decision-Making on Social Preferences : An Experimental Study

Group decision-making processes are often adopted to strengthen social bonds. In this paper, I study experimentally the effects of group decision-making on social preferences towards group members, while distinguishing between participation and outcome effects. I find that participation in a group decision-making process enhances kindness towards group members, irrespective of whether the outcome is positive or negative. Specifically, group decision-making increases the odds of allocating a higher payoff to a group member by 1.3 times. Moreover, it lowers willingness to punish group members for perceived negative intentions, and increases charity concern, i.e., aversion towards receiving a higher payoff than group members. The positive effects of group decision-making on social behavior towards group members do not spill over to others outside the group. Consistent with observed behavior, subjects from decision-making groups report a stronger feeling of attachment towards group members than non-decision-making groups