Nov 26, 2015

In Press: When Experience meets Description

Tomás Lejarraga and I have a new ARTICLE IN PRESS at Management Science. Here's the short abstract:

How do teams make joint decisions under risk when some team members learn about a prospect from description and others learn from experience? In a series of experiments, we found that two-person teams composed of one participant who learned from description and a second participant who learned from experience arrive at shared decisions via mutual concessions. This attenuated individual biases, such as the over- and underweighting of small probabilities. The social interaction thus led dyads to approximate normative standards more closely than individual decision makers. Finally, in processing experiential information, dyads appear sensitive to the reliability of the experience.