Collective intertemporal decisions and heterogeneity in groups

Many important intertemporal decisions are made by groups rather than individuals. What happens to collective decisions when there is internal conflict about the tradeoff between present and future has not been thoroughly investigated so far. We study experimentally the causal effect of group members' heterogeneous payoffs from waiting on intertemporal choices. We find that three-person groups behave more patiently than individuals. This effect stems from the presence of at least one group member with a high payoff from waiting. We analyze additional treatments, group chat content, and survey data to uncover the mechanism through which heterogeneity in groups increases patience. (C) 2021 Elsevier Inc. All rights reserved.

Automated summary

The study shows that three-person groups are more patient than individuals, primarily due to the presence of at least one group member with a high payoff from waiting. The heterogeneity within groups increases patience, as revealed through additional treatments, group chat content, and survey data, shedding light on the understanding and practice of collective decision-making.