Professor of Decision Sciences
Time Preferences; Dynamic Consistency; Present-bias Group Decisions; Corporate Governance; Auditing, Risk Control and Performance;
Journal Article | Experimental Economics | 20 | March 2017
Patience and Time Consistency in Collective Decisions
The authors present experimental evidence regarding individual and group decisions over time. Static and longitudinal methods are combined to test four conditions on time preferences: impatience, stationarity, age independence, and dynamic consistency.Decision making in groups should favor coordination via communication about voting intentions. The authors find that individuals are neither patient nor consistent, that groups are both patient and highly consistent, and that information exchange between participants helps groups converge to stable decisions.Finally the authors provide additional evidence showing that our results are driven by the specific role of groups and not by either repeated choices or individual preferences when choosing for other subjects.