Framing effects in group investment decision making: role of group polarization

Prospect theory proposes that framing effects result in a preference for risk-averse choices in gain situations and risk-seeking choices in loss situations. However, in group polarization situations, groups show a pronounced tendency to shift toward more extreme positions than those they initially held. Whether framing effects in group decision making are more prominent as a result of the group-polarization effect was examined. Purposive sampling of 120 college students (57 men, 63 women; M age = 20.1 yr., SD = 0.9) allowed assessment of relative preference between cautious and risky choices in individual and group decisions. Findings indicated that both group polarization and framing effects occur in investment decisions. More importantly, group decisions in a gain situation appear to be more cautious, i.e., risk averse, than individual decisions, whereas group decisions in the loss situation appear to be more risky than individual decisions. Thus, group decision making may expand framing effects when it comes to investment choices through group polarization.     

The debiasing effect of counterfactual mind-sets: Increasing the search for disconfirmatory information in group decisions

We hypothesized that the activation of a counterfactual mind-set minimizes decision errors resulting from the failure of groups to seek disconfirming information to test an initial hypothesis. To test this hypothesis, we conducted two experiments examining the decision making processes of groups. The task for both experiments was modeled after the Space Shuttle Challenger disaster, and groups had to actively seek disconfirmatory information to make a correct decision. Prior to beginning the group decision making task, groups were exposed to one of two pre-task scenarios in which the salience of counterfactual thoughts was manipulated. In Experiment 1, groups in the counterfactual prime condition were significantly more likely to make the correct decision than groups in the non-counterfactual prime condition. In Experiment 2, we replicated the effect of counterfactual primes on decision accuracy and demonstrated that groups in the counterfactual prime condition were more likely to seek disconfirmatory information than groups in the non-counterfactual prime condition. We also conducted mediation analyses that clarify the decision making process. Implications for group decision making are discussed.     

Affective influences on individual and group judgments

Do emotional states influence the social judgments made by groups and individuals? Based on affect-cognition theories and research on group judgmental shifts, we predicted that group discussion will enhance positive mood effects on judgments, but inhibit affectively-based distortions in dysphoric moods. Positive, neutral and negative moods were induced using audiovisual presentations. Individual and group consensus judgments of nine person categories on three judgmental dimensions (evaluation, competence and self-confidence) were obtained in two experimental sessions separated by a two-week interval. Results showed that individuals made more positive judgments when happy, and more negative judgments when sad than did controls. Group discussion resulted in a further polarization of positive judgments, and the attenuation of negative judgments. The findings are interpreted as evidence for the important role affect plays in mediating both individual cognitive processes and interactive social behaviours. The implications of the results for contemporary affect-cognition theories and models of group behaviour are considered.     

From identified patient to identifiable group: the alchemy of the group as a whole

Group-as-a-whole theory is a relational paradigm of some complexity. Despite the growing popularity of this perspective, there is abiding confusion about the essence of group-as-a-whole practice and whether the approach attends sufficiently to members and part processes. The threefold aims of this article are to (a) show how group-centered thinking differs essentially from traditional psychodynamic theory that relies heavily on familial dynamics, interpretation, and transference analysis; (b) present the mind-set and working principles for a generic treatment that specifically utilizes collective forces generated in the context of the group matrix; and (c) compare and contrast the thrust of recent dyadic relational therapies with group therapy generally and the group-as-a-whole approach more particularly. The relationship between the whole (group) and its parts (members and what they bring) is detailed and demonstrated as it appears in the context of fused, affiliated, fragmented, and differentiated groups.     

Biased information search in group decision making

Research has shown that people prefer supporting to conflicting information when making decisions. Whether this biased information search also occurs in group decision making was examined in three experiments. Experiment 1 indicated that groups as well as individuals prefer supporting information and that the strength of this bias depends on the distribution of the group members' initial decision preferences. The more group members had chosen the same alternative prior to the group discussion (group homogeneity), the more strongly the group preferred information supporting that alternative. Experiment 2 replicated these results with managers. Experiment 3 showed that the differences between homogeneous and heterogeneous groups reflect group-level processes. Higher commitment and confidence in homogeneous groups mediated this effect. Functional and dysfunctional aspects of biased information seeking in group decision making are discussed.     

Cultural Chameleons: Biculturals,Conformity Motives,and Decision Making

Prior research suggests that bicultural individuals (i.e., individuals with 2 distinct sets of cultural values) shift the values they espouse depending on cues such as language. The authors examined whether the effects of language extend to a potentially less malleable domain, behavioral decisions, exploring the extent to which bilingual individuals shift the underlying strategies used to resolve choice problems. Although past research has explained language‐induced shifts in terms of knowledge accessibility principles, the motivation to conform to observers’ norms can also drive these shifts. This article focuses on shifts in the general strategy of avoiding losses rather than pursuing gains, which is more often exhibited by Chinese than by Westerners. Five studies of Hong Kong bicultural individuals found that language manipulation (Cantonese vs. English) increases tendencies to choose compromise options in a product decision task, endorse associated decision guidelines that advocate moderation as opposed to extreme paths, defer decision making in problems where it can be postponed, and endorse decision guidelines that advocate caution rather than decisive action. A motivational explanation of these effects was confirmed.     

From individual preference construction to group decisions: Framing effects and group processes

Two choice tasks known to produce framing effects in individual decisions were used to test group sensitivity to framing, relative to that of individuals, and to examine the effect of prior, individual consideration of a decision on group choice. Written post-decision reasons and pre-decision group discussions were analyzed to investigate process explanations of choices made by preexisting, naturalistic groups. For a risky choice problem, a similar framing effect was observed for groups and individuals. For an intertemporal choice task where consumption was either delayed or accelerated, naïve groups (whose members had not preconsidered the decision) showed a framing effect, less discounting in the delay frame, opposite to that observed in individuals. Predecided groups showed a non-significant effect in the other, expected direction. In all cases, process measures better explained variability in choices across conditions than frame alone. Implications for group decision research and design considerations for committee decisions are addressed.     

The contagious leader: impact of the leader's mood on the mood of group members, group affective tone, and group processes

The present study examined the effects of leaders' mood on (a) the mood of individual group members, (b) the affective tone of groups, and (c) 3 group processes: coordination, effort expenditure, and task strategy. On the basis of a mood contagion model, the authors found that when leaders were in a positive mood, in comparison to a negative mood, (a) individual group members experienced more positive and less negative mood, and (b) groups had a more positive and a less negative affective tone. The authors also found that groups with leaders in a positive mood exhibited more coordination and expended less effort than did groups with leaders in a negative mood. Applied implications of the results are discussed.     

Political polarization projection: social projection of partisan attitude extremity and attitudinal processes

What influences perceptions of political polarization? The authors examine the polarization of people's own political attitudes as a source of perceived polarization: Individuals with more extreme partisan attitudes perceive greater polarization than individuals with less extreme partisan attitudes. This "polarization projection" was demonstrated in 3 studies in which people estimated the distribution of others' political attitudes: one study with a nationally representative sample concerning the 2008 presidential election, and 2 studies concerning university students evaluating a policy regarding scarce resource allocation. These studies demonstrate that polarization projection occurs simultaneously with and independently of simple projection, the tendency to assume that others share one's partisan political attitudes. Polarization projection may occur partly because people assume that others engage in similar attitudinal processes as the self, such as extensive thought and emotional arousal. The projection of various attitudinal processes was demonstrated in a study concerning health care reform policies. Further supporting this explanation, polarization projection increased when people introspected about their own attitudinal processes, which increased the accessibility of those processes. Implications for perceptions of partisanship, social judgment, and civic behavior are discussed.     

The double‐edged sword of diversity: Toward a dual pathway model

Williams and O'Reilly (1998) published a seminal review of diversity research that has become a classic resource for researchers and practitioners alike. In the current review, we update the theoretical record by discussing traditional views of, as well as recent developments to, the 3 prominent frameworks used to understand diversity: social categorization, similarity‐attraction, and information and decision‐making. Furthermore, we propose a dual pathway model of diversity's effects that integrates all 3 frameworks. In our model, both positive and detrimental effects of diversity stem from processes of social categorization. Whereas these processes disrupt group functioning when intergroup bias is activated, when bias is not activated, we propose that social categorization and reduced attraction to dissimilar others will allow individuals in diverse rather than homogeneous groups to focus more on the task, anticipate differences in task‐relevant opinions and perspectives, and engage in more effortful information processing. Finding the balance is key.     

When group members admit to being conformist: the role of relative intragroup status in conformity self-reports

Five studies examined the hypothesis that people will strategically portray the self as being more group influenced the more junior they feel within the group. Among social psychologists (Study 1), ratings of self-conformity by group members were greater when the status of the participant was low than when it was high. These effects were replicated in Studies 2, 3, and 4 in which relative intragroup status was manipulated. In Study 3, the authors found junior group members described themselves as more conformist than senior members when they were addressing an ingroup audience, but when they were addressing an outgroup audience the effect disappeared. Furthermore, junior members (but not senior members) rated themselves as more conformist when they were led to believe their responses were public than when responses were private (Study 5). The discussion focuses on the strategic processes underlying low-status group members' self-reports of group influence and the functional role of conformity in groups.     

Social complexity can drive vocal complexity: group size influences vocal information in Carolina chickadees

One hypothesis to explain variation in vocal communication in animal species is that the complexity of the social group influences the group's vocal complexity. This social-complexity hypothesis for communication is also central to recent arguments regarding the origins of human language, but experimental tests of the hypothesis are lacking. This study investigated whether group size, a fundamental component of social complexity, influences the complexity of a call functioning in the social organization of Carolina chickadees, Poecile carolinensis. In unmanipulated field settings, calls of individuals in larger groups had greater complexity (more information) than calls of individuals in smaller groups. In aviary settings manipulating group size, individuals in larger groups used calls with greater complexity than individuals in smaller groups. These results indicate that social complexity can influence communicative complexity in this species.     

Groupthink, Bay of Pigs, and Watergate Reconsidered

Irving Janis's concept of groupthink can be seen in the context of our on-again-off-again love affair with groups. Group decisions have often been seen as offering the benefits of collective wisdom, but may also lead to disastrous consequences. Groupthink then focuses on the negative effects of erroneous group decisions. Two major examples of groupthink are reexamined and compared: the disastrous Bay of Pigs decision by the elite advisory group of President Kennedy, and the advisory groups of President Nixon, which led to the Watergate disaster and at unsuccessful attempts to cover up. In both, it is suggested there was a “runaway norm,” escalation and polarization with the norm being to exceed other members of the group in taking more extreme and unrestrained actions against an “enemy.” While Janis seems to suggest that groupthink will ultimately lead the group to fail in its ultimate endeavors, we need to consider the frightening possibility that in the case of the Nixon group, the group actions came close to being successful.     

Informed horses are influential in group movements,but they may avoid leading

In species that move in cohesive groups, animals generally reach decisions through socially distributed processes, and individual knowledge is expected to influence collective decision making. Pooling of information should not be considered a general rule, however, since conflicts of interest may occur between group members. When resources are limited or highly attractive, higher-ranking individuals can prevent others from accessing food, and subordinates may have an interest in withholding information about its location. We investigated the role individual knowledge may play in recruitment processes in four groups of horses (Equus caballus). Animals were repeatedly released in a food search situation, in which one individual had been informed about the location of a preferred food, while another was a naïve control subject. Horses that were informed about the location of the feeding site were seen to approach the food source more steadily and were followed by a higher number of group members than their uninformed counterparts. Recruitment processes appeared mostly passive. Among the informed subjects, lower-ranking individuals were overall less followed than the higher-ranking ones. Most lower-ranking horses arrived alone at the feeding site. Non-followed informed subjects spent less time in active walk and used direct paths less frequently than followed animals, and they were joined by fewer partners at the attractive food source and spent more time feeding alone. This indicates that the influence of informed individuals on the behavior of other group members was a mixed process. Some horses brought nutritional benefits to their conspecifics by leading them to food supplies, whereas the behavior of others might be functionally deceptive.     

Order effects and memory for evidence in individual versus group decision making in auditing

Sequential processing of evidence may lead to recency effect, a potential bias in judgment. The present research seeks to extend the literature on recency effects by assessing the potential moderating influence of team work: whether group decision making moderates the severity of recency effects predicted by Hogarth and Einhorn (1992), and whether group processing influences the accuracy of, and confidence in memory for evidence. Experienced auditors from a Big‐6 accounting firm made audit judgments, either individually or as groups. They were randomly assigned to one of two levels of evidence presentation order. After performing the judgment task, participants completed two evidence recognition tests. Consistent with prior findings, recency effects on judgments were observed, but only for individuals. Group judgments or audit reports were not affected by recency. Order effects, however, did not translate into different choices of audit reports, and did not persist in memories of either individuals or groups. As expected, group memory was more accurate than individual memory and groups were more confident than individuals. Overall, confidence in accurate memories was greater than in inaccurate ones. Copyright © 1999 John Wiley & Sons, Ltd.     

Cognitive effects of racial diversity: White individuals’ information processing in heterogeneous groups

Two experiments tested the hypothesis that mere anticipation of membership in a racially heterogeneous group can lead White individuals to exhibit more thorough information processing. In Study 1 White participants who expected to discuss a race-relevant topic with a racially diverse group exhibited better comprehension of topical background readings than did Whites assigned to all-White groups. Study 2 replicated these results and indicated that the processing effects were attributable in part to an increase in race-relevant thought activation among White individuals in a diverse setting. No such anticipatory effects of racial composition were observed for Whites expecting to discuss race-neutral topics. Taken together, these studies render untenable the assumption that the observable effects of racial diversity are wholly attributable to the novel contributions of non-White group members. More generally, they emphasize the need for additional empirical investigation of the cognitive processes through which racial heterogeneity influences individual and group performance.     

Molar and latent models of cognitive slowing: Implications for aging,dementia, depression,development, and intelligence

The time that it takes a group of participants to respond in simple cognitive tasks varies systematically with the identity of the group. For example, on most tasks, older adults take longer to respond than younger adults. Similarly, on most tasks, younger children take longer to respond than mature children. More generally, response time has been found to vary reliably with a number of other factors that differentiate groups of participants, including the levels of dementia, depression, and intelligence. For each factor, investigators have sought to determine whether the various mental processes are slowed identically as the level of impairment increases. They have based this determination largely on the relation between the overall response times of the relevant groups. Here it is shown how one can base this determination on the relation between the speeds of the individual latent or mental processes governing the performance of the target groups. Such a shift in emphasis has three important advantages: it reduces the possibility of falsely accepting or rejecting the hypothesis that all processes are slowed identically; it pinpoints the actual processes that are lengthened disproportionately when processes are not slowed identically; and it makes possible the rigorous testing of the effects of changes in speed on other dependent variables (e.g., accuracy).     

Goal Setting by Groups Performing an Additive Task: A Comparison With Individual Goal Setting1

This article compares goal levels and task performance of groups and individuals that are assigned or self-set goals. Groups performed an additive task that allowed for direct comparison with individuals' i]ndependent performance of the task. Consistent with predictions, groups and individuals selected goals that were less difficult than assigned goals which required only a modest increase in performance. Group members and individuals who were assigned goals attained higher levels of performance than self-set or no goal condition subjects. The prediction that group members and individuals who self-set their goals would have more positive affective reactions to the goal-setting situation than participants in assigned condition was supported. The results of this study are consistent with the existing literature on groups and individuals regarding effects of goals, performance, and affective reactions. Analyses also indicate that the group goal decision process involves a compensatory strategy in which an average of group member preferences for the goal was used to reach a group goal decision. Discussion focuses on the similarities and differences between the findings of self-set and assigned goal-setting situations for groups and individuals, with particular reference to goal choice strategies, goal expectancies, and efficacy.     

Individual postdecision processes in group settings

In two experiments Differentiation and Consolidation Theory (Diff Con) (Svenson, 1992) was used to investigate individual postdecision making processes in three-member groups. It was predicted that in groups in which the subjects preferred different alternatives (conflict groups), subjects would consolidate their own preferred alternative, and not the group's final decision. A second hypothesis was that no consolidation would be indicated in groups in which all members preferred the same alternative (non-conflict groups). The results showed that in conflict groups, the members who gave up their preferred alternative (minority members) consolidated their own preference, thereby significantly regretting the group decision. In contrast, members who got their own will through in the majority decision (majority members) showed no consolidation of the group decision. The corresponding pattern of results was replicated in a second experiment, using a different decision situation. The results indicated that perceptions of social support, agreement in a group and decreasing responsibility for a group's decision, could all partly substitute consolidation by attractiveness restructuring.     

From fault line to group fission: understanding membership changes in small groups

Group fissions occur when two or more members leave a parent group to either form a new group or join an existing group. This article investigates the interplay between two factors: the presence of an intragroup conflict and subgroup boundaries on the group fission process. It is hypothesized that subgroup divisions act as potential fault lines along which groups split after they experience conflict. The results of three experiments, one scenario study and two laboratory studies involving small task groups, support the group fault line hypothesis. The authors discuss the implications of these findings for theory and research on membership changes in small groups.