Peer effects on risk behaviour: the importance of group identity.

ABSTRACT: This paper investigates whether and to what extent group identity plays a role in peer effects on risk behaviour. We run a laboratory experiment in which different levels of group identity are induced through different matching protocols (random or based on individual painting preferences) and the possibility to interact with group members via an online chat in a group task. Risk behaviour is measured by using the Bomb Risk Elicitation Task and peer influence is introduced by giving subjects feedback regarding group members' previous decisions. We find that subjects are affected by their peers when taking decisions and that group identity influences the magnitude of peer effects: painting preferences matching significantly reduces the heterogeneity in risk behaviour compared with random ma

SUBMITTER: Gioia F 

PROVIDER: S-EPMC5326808 | biostudies-literature | 2017

REPOSITORIES: biostudies-literature