How Sharing Information Can Garble Experts' Advice

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 5
Pages: 463-68

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

We model the strategic provision of advice in environments where a principal's optimal action depends on an unobserved, binary state of interest. Experts receive signals about the state and each recommends an action. The principal and all experts dislike making errors in their decision and recommendations, respectively, but may have different costs of different errors. Is it in the principal's interest to let experts share information? Although sharing improves experts' ability to avoid errors, we identify a simple environment in which any principal, regardless of how he trades off the different errors, is worse off if he permits information sharing.

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:5:p:463-68
Journal Field
General
Author Count
3
Added to Database
2026-01-25