Leadership

Deciding To Decide: Gender, Leadership And Risk-Taking In Groups

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Executive Summary

Being the leader in a group often involves making risky decisions that affect the payoffs of all members, and the decision to take this responsibility in a group is endogenous in many contexts. In this paper, the authors experimentally study: the willingness of men and women to make risky decisions on behalf of a group, the amount of risk men and women take for the group, in comparison to their individual decisions. They observe a striking difference between males and females, with a much lower fraction of women being willing to make the group decision than men.

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