A Model of Expertise

Vijay Krishna and John Morgan
Additional contact information
Vijay Krishna: Penn State University

Game Theory and Information from EconWPA

Abstract: We study a model in which two 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 consult a cabinet of (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. Finally, a cabinet of extremists is of no value.

Keywords: Information; experts; cheap talk. (search for similar items in EconPapers)
JEL-codes: C72 D82 (search for similar items in EconPapers)
Date: 1999-02-11
Note: Type of Document - Latex using Scientific Workplace 3.0; prepared on IBM PC; to print on HP; pages: 33; figures: Three figures drawn in Latex are included in the document.
View list of references View citations in EconPapers

Downloads: (external link)
http://129.3.20.41/eps/game/papers/9902/9902003.tex (application/x-tex)
http://129.3.20.41/eps/game/papers/9902/9902003.pdf (application/pdf)
http://129.3.20.41/eps/game/papers/9902/9902003.ps.gz (application/postscript)

Related works:
Working Paper: A Model of Expertise (1999)
Working Paper: A Model of Expertise (1999)
Journal Article: A Model Of Expertise (2001)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpga:9902003

Access Statistics for this paper

More papers in Game Theory and Information from EconWPA
Series data maintained by EconWPA ().