GROUP DECISION-MAKING IN THE NEGATIVE DOMAIN

During the past 10 years, there has been continuing discussion of a ce ntral idea of prospect theory: individuals' risk-taking behavior will differ depending on whether they perceive themselves to be in the nega tive domain (the domain of losses) or the positive domain (the domain of gains). Specifically, prospect theory proposes that individuals wil l be risk seeking in the negative and risk averse in the positive doma in. During this same period, the study of group behavior has continued , and there has been consideration of group factors that may affect ri sk taking. However, there has been no systematic effort to establish d irect linkages between the group behavior and the prospect theory lite rature. In this article, we begin by reviewing the two Literature stre ams and suggesting linkages. Based on the linkages we see, we propose a series of testable hypotheses that we believe can establish are sear ch agenda for those working in this area. Finally, we propose implicat ions for managers and practitioners.