Even though decision-making in small teams is pervasive in business and in private life, littleis known about subjects’ preferences with respect to individual and team decision-making andabout the consequences of respecting these preferences. We report the results from anexperimental...

We examine the influence of team size on decision making in a beauty-contest experiment.Teams with four members outperform teams with two members and single personssignificantly, whereas the latter two types of decision makers do not differ.

We present a model where compensation within a workteam is determinedendogenously by the use of a rank-order tournament. Team memberscompete in their efforts for the right to propose the distribution of a prizewithin the team. The implementation of a proposal requires the approvalof other team...

Economics has devoted little attention so far as to whether the type of decision maker matters for economic decisions. However, many important decisions like those on monetary policy or a company’s business strategy are made by (small) groups rather than an individual. We compare behaviour of...

Seminal models of herd behaviour and informational cascades point out the existence of information negativeexternalities, and propose to destroy information in order to achieve social improvements. Although in the lastyears many features of herd behaviour and informational cascades have been...

We compared the behavior of groups and individuals in a two-person trust game. The first mover in this game, the sender, receives an endowment and can send any part of it to the responder; the amount sent is tripled, and the responder can then return to the sender any portion of the tripled sum....

In this experimental study we analyze one individual and three collective punishment rules in a public good setting. We present evidence and explanations for differences between the rules concerning punishment intensity, contribution and profit levels, as well as justice. Finally, we investigate...

We examine the strategic behavior of first and second movers in a two party bargaining game with uncertain information transmission. When the first mover states her demand she does only know the probability with which the second mover will be informed about it. If the second mover is informed,...

We test for behavioral differences between groups and individuals in gift-exchange experiments. Related studies establish group behavior as typically closer to the game-theoretic equilibrium. We show that this result my depend crucially on the decision making procedure within groups. A novel...

In games of social learning individuals tend to give too much weight to their own private information relative to the information that is conveyed by the choices of others. In this paper we investigate differences between individuals and small groups as decision makers in information cascade...