Why do experts give simple advice?

• Tác giả: Benjamin Davies
• Ngôn ngữ: eng
• Ký hiệu phân loại: 070.444 Miscellaneous information, advice, amusement
• Thông tin xuất bản: 2022
• Bộ sưu tập: Báo, Tạp chí
• ID: 195778

Tóm tắt

An expert tells an advisee whether to take an action that may be good or bad. He may provide a condition under which to take the action. This condition predicts whether the action is good if and only if the expert is competent. Providing the condition exposes the expert to reputational risk by allowing the advisee to learn about his competence. He trades off the accuracy benefit and reputational risk induced by providing the condition. He prefers not to provide it -- i.e., to give "simple advice" -- when his payoff is sufficiently concave in the posterior belief about his competence.