Abstract
Three relatively homogeneous group risk compositions consisting of High, Medium, and Low risk takers, respectively, were compared with Mixed groups composed of two High, one Medium, and two Low risk members. All composition conditions showed a risky shift, but Mixed groups showed a significantly greater shift than the more homogeneous groups, which did not differ from one another. Individual group members' reactions were also examined. In all composition conditions, magnitude of individual risky shift was inversely related to the member's relative initial risk position in the group. These results were predicted by Brown's Value hypothesis but were either not predicted by, or contradictory to, the Leadership, Diffusion of Responsibility, and Familiarization hypotheses. It was concluded that the heterogeneity of group member risk preferences is an important factor in risky shift, and that procedures of averaging over group members' scores have obscured the dynamics behind the phenomenon.
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