A model of expertise

Citation
V. Krishna et J. Morgan, A model of expertise, Q J ECON, 116(2), 2001, pp. 747-775
Citations number
18
Categorie Soggetti
Economics
Journal title
QUARTERLY JOURNAL OF ECONOMICS
ISSN journal
00335533 → ACNP
Volume
116
Issue
2
Year of publication
2001
Pages
747 - 775
Database
ISI
SICI code
0033-5533(200105)116:2<747:AMOE>2.0.ZU;2-G
Abstract
We study a model in which perfectly informed experts offer advice to a deci sion 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 dif ferent degrees. When the decision maker consults only a single expert, the expert withholds substantial information from the decision maker. We ask wh ether this situation is improved by having the decision maker sequentially consult two experts. We first show that there is no perfect Bayesian equili brium in which full revelation occurs. When both experts are biased in the same direction, it is never beneficial to consult both. In contrast, when e xperts are biased in opposite directions, it is always beneficial to consul t both. Indeed, in this case full revelation may be induced in an extended debate by introducing the possibility of rebuttal.