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A Model of Expertise

Author

Listed:
  • Vijay Krishna

    (Penn State University)

  • John Morgan

    (Princeton University)

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 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.

Suggested Citation

  • Vijay Krishna & John Morgan, 1999. "A Model of Expertise," Working Papers 154, Princeton University, School of Public and International Affairs, Discussion Papers in Economics.
    • Handle: RePEc:pri:wwseco:dp206.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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