Author
Listed:
- Bednarik, Peter
- Schultze, Thomas
Abstract
We investigate decision-making in the Judge-Advisor-System where one person, the “judge”, wants to estimate the number of a certain entity and is given advice by another person. The question is how to combine the judge’s initial estimate and that of the advisor in order to get the optimal expected outcome. A previous approach compared two frequently applied strategies, taking the average or choosing the better estimate. In most situations, averaging produced the better estimates. However, this approach neglected a third strategy that judges frequently use, namely a weighted mean of the judges’ initial estimate and the advice. We compare the performance of averaging and choosing to weighting in a theoretical analysis. If the judge can, without error, detect ability differences between judge and advisor, a straight-forward calculation shows that weighting outperforms both of these strategies. More interestingly, after introducing errors in the perception of the ability differences, we show that such imperfect weighting may or may not be the optimal strategy. The relative performance of imperfect weighting compared to averaging or choosing depends on the size of the actual ability differences as well as the magnitude of the error. However, for a sizeable range of ability differences and errors, weighting is preferable to averaging and more so to choosing. Our analysis expands previous research by showing that weighting, even when imperfect, is an appropriate advice taking strategy and under which circumstances judges benefit most from applying it.
Suggested Citation
Bednarik, Peter & Schultze, Thomas, 2015.
"The effectiveness of imperfect weighting in advice taking,"
Judgment and Decision Making, Cambridge University Press, vol. 10(3), pages 265-276, May.
Handle:
RePEc:cup:judgdm:v:10:y:2015:i:3:p:265-276_6
Download full text from publisher
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:judgdm:v:10:y:2015:i:3:p:265-276_6. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jdm .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.