Group Gender Diversity, Individual Power and Influence, and Collective Risk-Taking

Abstract

Using the multiple Emmy Award-winning television game show, Cash Cab, as a pseudo-laboratory, we find that the presence (or addition) of one powerful or influential female in (or to) a small (previously homogeneous male) group significantly reduces the group’s willingness to take qualitatively excessive financial risks. If, however, a group (of at least three persons) consists of one such female, adding more females does not significantly alter the risk-taking behavior of the group. Overall, our results show that an individual’s or a subgroup’s share of power and influence, not just numerical strength, determines whether their tendencies (e.g., relative risk-taking behavior) manifest in collective decisions/outcomes. Our findings have external implications for studies in other settings (e.g., the corporate board).