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Although groups usually manage to combine information to make well-informed
decisions, they also make mistakes. We investigate experimentally one source of suboptimal
decision-making by groups: the selective and asymmetric sharing of egorelevant
information within teams. We show that positive performance feedback is
shared more often with team members than negative performance feedback. Asymmetric
information sharing combined with the receivers’ selection neglect boosts team
confidence compared to an unbiased exchange of feedback. Consequently, weaker teams
make worse investment decisions in bets whose success depends on the team’s ability.
The endogenous social exchange of ego-relevant information may foster detrimental
group delusion.
