On defining ex ante payoffs in games with diffuse prior

We investigate information aggregation and competition in a delegation framework. An uninformed principal is unable to perform a task herself and must choose between one of two biased and imperfectly informed experts. In the focal equilibrium, experts exaggerate their biases, anticipating an ideological winner’s curse. We show that having a second expert can benefit the principal, even when equally or more biased than the first expert. The principal can benefit from commitment to an “element of surprise” and prefers experts with equal rather than opposite biases. (JEL D82, D83)

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A Delegation-Based Theory of Expertise

Ambrus¹,

Baranovskyi

Kolb

2021

American Economic Journal: Microeconomics

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On defining ex ante payoffs in games with diffuse prior

Cited by 1 publication

References 10 publications

A Delegation-Based Theory of Expertise

A Delegation-Based Theory of Expertise

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