Abstract

We study the effects of varying individual pivotality and endogenous group entry on the selfishness of group decisions. Selfish choices by groups are often linked to the possibility of diffusing responsibility; the moral costs of these decisions appear smaller when individual pivotality is reduced. Our experimental design explores unanimity voting under distinct defaults to identify this effect. In exogenously formed groups we find evidence of responsibility diffusion, but this diminishes with repetition. Our results also demonstrate the role of self-selection in generating differences in group behaviour depending on individual pivotality. Driven by a heterogeneous selection pattern, endogenous group formation amplifies the effects of a change in pivotality. Some people actively seek an environment to diffuse responsibility, while others join groups to promote pro-social behaviour.

Highlights

  • This paper revisits the role of responsibility diffusion as an explanation of why groups make more selfish decisions than individuals

  • We demonstrate that endogenous group formation matters in the context of social behaviour

  • It amplifies the differences we observe between group decision making with and without the possibility to diffuse responsibility

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Summary

Introduction

This paper revisits the role of responsibility diffusion as an explanation of why groups make more selfish decisions than individuals. The literature in behavioural economics has established that decisions by exogenously formed groups often differ from those made by individuals facing the same environment. In search of an explanation for this phenomenon, the more recent literature examines the role of individual responsibility for immoral group actions. Individuals in a group collectively share the responsibility, which is thereby diffused. This is theoretically studied by for instance Rothenhäusler et al (2018) and experimentally in Behnk et al (2017) and Falk et al (2020).

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