Leadership in Groups: A Monetary Policy Experiment
by Alan S. Blindera and John Morganb
This paper studies monetary policy decision making by
committee, using an experimental methodology. In an earlier
paper (Blinder and Morgan 2005), we found that groups not
only outperformed individuals, but they also took no longer
to reach decisions. We successfully replicate those results here.
Next, we find little difference between the performances of fourperson
and eight-person groups; the larger groups outperform
the smaller groups by a very small (and often insignificant)
margin. Third, and most surprisingly, we find no evidence of
superior performance by groups that have designated leaders.
Possible reasons for that strongly counterintuitive finding are
JEL Codes: C92, E58.
(PDF, 34 pages 286 kb)
bUniversity of California, Berkeley