Are groups more efficient than individuals?

Abstract: The conflict between equity and efficiency is a central challenge in public policy and managerial decision making, yet most research has focused on individual rather than collective decisions. This research examines how group decision making shapes allocation choices involving equity efficiency tradeoffs. Across three studies, allocation decisions made by groups are compared to those made by individuals. Study 1 shows that group decision makers experience lower feelings of responsibility, guilt, and blame than individuals. Study 2 demonstrates that groups are more likely than individuals to favor efficiency in a medical allocation decision involving organ transplantation. Study 3 identifies a possible mechanism, showing that group members expect their fellow members to be more efficient than they themselves are willing to be, suggesting a form of moral free riding. Together, these findings advance understanding of equity efficiency tradeoffs in collective decision making.

Keywords: Resource allocation; Group decision making; Fairness; Experimental design