Submission 183
Shared Responsibilities for Inconvenient Information: An Experimental Study
panel.6-222 - Floor 1-04
Presented by: Hwee Bin Koh
Information about the consequences of one's actions can be inconvenient, and this can lead individuals to avoid acquiring it to protect their self-image when making harmful choices. This paper studies whether group decision-making affects the acquisition of these information and subsequent choices, and whether these effects depend on responsibility allocation and information sharing within the group. In a laboratory experiment, participants choose between options that generate payoffs for themselves and negative externalities for a third party. Decisions are made either individually or in groups of three. I find no difference in individual-level information acquisition between individual and group settings. In group settings, responsibility for information acquisition and the sharing of acquired information are varied across treatments. Information about externalities can be revealed at no cost. Within groups, shared responsibility increases information acquisition relative to assigned responsibility, particularly at the extensive margin. Moreover, information sharing significantly reduces group-level ignorance. These differences in information acquisition translate into differences in choices: higher externalities are chosen under assigned responsibility, while lower externalities are chosen under shared responsibility and shared information. The differences in the level of externalities are primarily explained by the differences in information acquisition across treatments. Relative to a full-information benchmark, participants in groups do remain uninformed and choose options with higher externalities, consistent with deliberate information avoidance.