Risk taking by individuals and informal groups with the use of industrial product purchasing situations as stimuli

Individual versus group risk taking was examined by using a novel set of industrial product purchasing situations as stimuli. The set incorporated situations that varied along a dimension called 'normative risk'. Situations represented either low normative risk, medium normative risk, or high normative risk. Normative risk was defined in a decision theoretical context. The set was administered to introductory business students at a large university in the United States. The results of the study showed that groups were not invariably riskier than individuals; rather the amount of risky shift following group discussion was negatively related to the level of normative risk. This overall conclusion held true also in relation to the degree of perceived riskiness of the situations, since a positive relationship between normative risk and perceived risk was established. The theoretical implications of the results are discussed.