SEQUENTIAL EXPERT ADVICE: SUPERIORITY OF CLOSED‐DOOR MEETINGS

B-Tier
Journal: International Economic Review
Year: 2019
Volume: 60
Issue: 4
Pages: 1877-1910

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Two career‐concerned experts sequentially give advice to a Bayesian decision maker (D). We find that secrecy dominates transparency, yielding superior decisions for D. Secrecy empowers the expert moving late to be pivotal more often. Further, (i) only secrecy enables the second expert to partially communicate her information and its high precision to D and swing the decision away from first expert's recommendation; (ii) if experts have high average precision, then the second expert is effective only under secrecy. These results are obtained when experts only recommend decisions. If they also report the quality of advice, fully revealing equilibrium may exist.

Technical Details

RePEc Handle
repec:wly:iecrev:v:60:y:2019:i:4:p:1877-1910
Journal Field
General
Author Count
2
Added to Database
2026-01-29