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Identifier to cite or link to this item: https://hdl.handle.net/10086/27755

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Title	Is Diversity in Capabilities Desirable When Adding Decision Makers?
Creator	Creator Name BEN-YASHAR, Ruth BEN-YASHAR, Ruth Affiliation Affiliation Name Bar Ilan University
Creator	Creator Name NITZAN, Shmuel NITZAN, Shmuel Affiliation Affiliation Name Bar Ilan University Affiliation Affiliation Name Hitotsubashi University
Editor	Contributor Name Hitotsubashi Institute for Advanced Study, Hitotsubashi University
Key Word	decisional capabilities
	group extension
	asymmetry
	homogeneity
	diversity
	mean preservation
JEL	D81
Abstract	When the benefit of making a correct decision is sufficiently high, even a slight increase in the probability of making such a decision justifies an increase in the number of decision makers. Applying a standard uncertain dichotomous choice benchmark setting, this study focuses on the relative desirability of two alternatives: adding individuals with capabilities identical to the existing ones and adding identical individuals with mean-preserving capabilities that depend on the states of nature. Our main result establishes that when the group applies the simple majority rule, variability in the capabilities of the new decision makers under the two states of nature, which is commonly observed in various decision-making settings, is less desirable in terms of the probability of making the correct decision.
Publisher	Hitotsubashi Institute for Advanced Study, Hitotsubashi University
Issued Date	2016-03-16
Language	English(eng)
Resource Type	technical report
Version Type	VoR
Is Part OfRelation -	Related Title Discussion paper series ; No. HIAS-E-21
Number of Pages	10
Appears in Collections	Discussion paper series / Hitotsubashi Institute for Advanced Study, Hitotsubashi University
URL	https://hdl.handle.net/10086/27755