Teams Make You Smarter: How Exposure to Teams Improves Individual Decisions in Probability and Reasoning Tasks

Teams Make You Smarter: How Exposure to Teams Improves Individual Decisions in Probability and Reasoning Tasks

Many important decisions are routinely made by transient and temporary teams, which perform their duty and disperse. Team members often continue making similar decisions as individuals. We study how the experience of team decision making affects subsequent individual decisions in two seminal probabi...

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Bibliographic Details
Published in:Management science Vol. 59; no. 6; pp. 1255 - 1270
Main Authors: Maciejovsky, Boris, Sutter, Matthias, Budescu, David V., Bernau, Patrick
Format: Journal Article
Language:English
Published: Linthicum INFORMS 01-06-2013
Institute for Operations Research and the Management Sciences
Subjects:
Auctions
Average prices
Behavior
Behavioral economics
Cognition & reasoning
Decision making
Dividends
Economics
Employee performance
Experimental economics
group decision making
Group membership
Hedging
Incentives
Individual behaviour
Knowledge
Knowledge transfer
Learning
Learning rate
Management science
markets
Monty Hall dilemma
Nationalekonomi
Prices
Probability
Psychological aspects
Reasoning
Social aspects
Studies
team decision making
Teams
Wason selection task
Work groups
Europe
Group decision making
Markets
Monty Hall dilemma
Team decision making
Wason selection task
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Summary:Many important decisions are routinely made by transient and temporary teams, which perform their duty and disperse. Team members often continue making similar decisions as individuals. We study how the experience of team decision making affects subsequent individual decisions in two seminal probability and reasoning tasks, the Monty Hall problem and the Wason selection task. Both tasks are hard and involve a general rule, thus allowing for knowledge transfers, and can be embedded in the context of markets that offer identical incentives to teams and individuals. Our results show that teams trade closer to the rational level, learn the solution faster, and achieve this with weaker, less specific performance feedback than individuals. Most importantly, we observe significant knowledge transfers from team decision making to subsequent individual performances that take place up to five weeks later, indicating that exposure to team decision making has strong positive spillovers on the quality of individual decisions. This paper was accepted by Uri Gneezy, behavioral economics.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
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ISSN:0025-1909
1526-5501
1526-5501
DOI:10.1287/mnsc.1120.1668