Abstract

  
 

References (12)



 


 



Why Do People Give Less Weight to Advice the Further it is from Their Initial Opinion?


Francesco Ravazzolo


Norges Bank

Øistein Røisland


Central Bank of Norway - Department of Economics
April 16, 2010

Norges Bank Working Paper No. 2010/04

Abstract:     
Experimental studies on decision making based on advice received from others find that the weight put on the advice is negatively related to the distance between the advice and the decisionmaker's initial opinion. In this paper, we show that the distance effect can follow from rational signal extraction when the decisionmaker has imperfect knowledge about the advisor's competence. What drives the result is the assumption that the decisionmaker is better informed about her own competence than about the advisor's competence.

Number of Pages in PDF File: 19

Keywords: Distance Effect, Policy Decision Making, Signal Extraction, Uncertainty

JEL Classification: C11, D78, D82, D83

working papers series


Download This Paper

Date posted: May 20, 2010  

Suggested Citation

Ravazzolo, Francesco and Røisland, Øistein, Why Do People Give Less Weight to Advice the Further it is from Their Initial Opinion? (April 16, 2010). Norges Bank Working Paper No. 2010/04. Available at SSRN: http://ssrn.com/abstract=1612297 or http://dx.doi.org/10.2139/ssrn.1612297

Contact Information

Francesco Ravazzolo (Contact Author)
Norges Bank ( email )
P.O. Box 1179
Oslo, N-0107
Norway

Øistein Røisland
Central Bank of Norway - Department of Economics ( email )
P.O. Box 1179
Oslo, N-0107
Norway
+47 22 31 67 39 (Phone)
+47 22 31 60 50 (Fax)

Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 200
Downloads: 25
References:  12

© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was processed by apollo8 in 2.438 seconds