The Power of Referential Advice

S-Tier
Journal: Journal of Political Economy
Year: 2021
Volume: 129
Issue: 11
Pages: 3073 - 3140

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

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

Abstract

Expert advice often extends beyond a simple recommendation, including information about alternative options. To explore the role of this referential advice, we enrich the expert’s informational advantage in a canonical model of communication with hard information. We show that when constructed just right, referential advice dissuades the decision maker from choosing options other than the recommendation, thereby making the recommendation itself more persuasive. We identify an equilibrium in which, with probability 1, the expert is strictly better off providing referential advice than she is in any equilibrium in which she provides a recommendation alone.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/715850
Journal Field
General
Author Count
3
Added to Database
2026-01-25