Risky Shift Phenomenon

Contrary to the popular belief that groups are usually more conservative than individuals there is abundant evidence to support the proposition that groups make riskier decisions than individuals do. There are four possible reasons. First, risk takers are persuasive in getting more cautious companions to shift their position. Second, as members of a group familiarize themselves with the issues and arguments they seem to feel more confident about taking risks. Third, the responsibility for decision making can be diffused across members of the group. Fourth, there is the suggestion that in our culture people do not like to appear cautious in a public context.