TY - JOUR
T1 - A model of expertise
AU - Krishna, Vijay
AU - Morgan, John
N1 - Funding Information:
* This research was supported by a grant from the National Science Foundation (SBR 9618648). We are grateful to Gene Grossman, George Mailath, Tomas Sjöström, Joel Sobel, and the referees for sharing their expertise with us.
PY - 2001/5
Y1 - 2001/5
N2 - We study a model in which perfectly informed experts offer advice to a decision maker whose actions affect the welfare of all. Experts are biased and thus may wish to pull the decision maker in different directions and to different degrees When the decision maker consults only a single expert, the expert withholds substantial information from the decision maker. We ask whether this situation is improved by having the decision maker sequentially consult two experts. We first show that there is no perfect Bayesian equilibrium in which full revelation occurs. When both experts are biased in the same direction, it is never beneficial to consult both. In contrast, when experts are biased in opposite directions it is always beneficial to consult both. Indeed, in this case full revelation may be induced in an extended debate by introducing the possibility of rebuttal.
AB - We study a model in which perfectly informed experts offer advice to a decision maker whose actions affect the welfare of all. Experts are biased and thus may wish to pull the decision maker in different directions and to different degrees When the decision maker consults only a single expert, the expert withholds substantial information from the decision maker. We ask whether this situation is improved by having the decision maker sequentially consult two experts. We first show that there is no perfect Bayesian equilibrium in which full revelation occurs. When both experts are biased in the same direction, it is never beneficial to consult both. In contrast, when experts are biased in opposite directions it is always beneficial to consult both. Indeed, in this case full revelation may be induced in an extended debate by introducing the possibility of rebuttal.
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U2 - 10.1162/00335530151144159
DO - 10.1162/00335530151144159
M3 - Article
AN - SCOPUS:0006739059
SN - 0033-5533
VL - 116
SP - 747
EP - 775
JO - Quarterly Journal of Economics
JF - Quarterly Journal of Economics
IS - 2
ER -