IDEAS home Printed from https://ideas.repec.org/a/eee/jobhdp/v156y2020icp82-96.html
   My bibliography  Save this article

Advice in the presence of external cues: The impact of conflicting judgments on perceptions of expertise

Author

Listed:
  • Palmeira, Mauricio

Abstract

Past studies on advice-taking have typically not given decision makers a way to evaluate the quality of the advice, other than by comparing it to their own judgment. In reality, decision makers are often aware of cues that suggest which estimates or options are better. I consider this common, but neglected context, and examine how the relationship between advice and external cues affect perceptions of expertise. I propose that a recommendation that conflicts with external cues has opposing effects: it decreases perceptions of expertise as it lowers perceptions of accuracy, but it increases perceptions of expertise as it signals judgment independence. Because the latter is more affected by diminishing sensitivity than the former, the impact of level of conflict on expertise takes an inverted-U form. Further, consistent with the egocentric bias, I find that advisors underestimate the negative impact of a non-conflicting advice on perceptions of expertise.

Suggested Citation

  • Palmeira, Mauricio, 2020. "Advice in the presence of external cues: The impact of conflicting judgments on perceptions of expertise," Organizational Behavior and Human Decision Processes, Elsevier, vol. 156(C), pages 82-96.
    • Handle: RePEc:eee:jobhdp:v:156:y:2020:i:c:p:82-96
    DOI: 10.1016/j.obhdp.2019.11.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S074959781730643X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.obhdp.2019.11.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yalch, Richard F & Elmore-Yalch, Rebecca, 1984. "The Effect of Numbers on the Route to Persuasion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(1), pages 522-527, June.
    2. Rader, Christina A. & Soll, Jack B. & Larrick, Richard P., 2015. "Pushing away from representative advice: Advice taking, anchoring, and adjustment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 130(C), pages 26-43.
    3. Kausel, Edgar E. & Culbertson, Satoris S. & Leiva, Pedro I. & Slaughter, Jerel E. & Jackson, Alexander T., 2015. "Too arrogant for their own good? Why and when narcissists dismiss advice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 131(C), pages 33-50.
    4. Highhouse, Scott, 2008. "Stubborn Reliance on Intuition and Subjectivity in Employee Selection," Industrial and Organizational Psychology, Cambridge University Press, vol. 1(3), pages 333-342, September.
    5. Sniezek, Janet A. & Buckley, Timothy, 1995. "Cueing and Cognitive Conflict in Judge-Advisor Decision Making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(2), pages 159-174, May.
    6. Yaniv, Ilan & Kleinberger, Eli, 2000. "Advice Taking in Decision Making: Egocentric Discounting and Reputation Formation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 83(2), pages 260-281, November.
    7. Jehoshua Eliashberg & John R. Hauser, 1985. "A Measurement Error Approach for Modeling Consumer Risk Preference," Management Science, INFORMS, vol. 31(1), pages 1-25, January.
    8. Ariely, Dan & Levav, Jonathan, 2000. "Sequential Choice in Group Settings: Taking the Road Less Traveled and Less Enjoyed," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 27(3), pages 279-290, December.
    9. Hal R. Arkes & Victoria A. Shaffer & Mitchell A. Medow, 2007. "Patients Derogate Physicians Who Use a Computer-Assisted Diagnostic Aid," Medical Decision Making, , vol. 27(2), pages 189-202, March.
    10. Sniezek, Janet A. & Van Swol, Lyn M., 2001. "Trust, Confidence, and Expertise in a Judge-Advisor System," Organizational Behavior and Human Decision Processes, Elsevier, vol. 84(2), pages 288-307, March.
    11. Gershoff, Andrew D & Broniarczyk, Susan M & West, Patricia M, 2001. "Recommendation or Evaluation? Task Sensitivity in Information," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(3), pages 418-438, December.
    12. Silvia Bellezza & Francesca Gino & Anat Keinan, 2014. "The Red Sneakers Effect: Inferring Status and Competence from Signals of Nonconformity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(1), pages 35-54.
    13. Mitchell, Andrew A & Dacin, Peter A, 1996. "The Assessment of Alternative Measures of Consumer Expertise," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 23(3), pages 219-239, December.
    14. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    15. Palmeira, Mauricio & Spassova, Gerri & Keh, Hean Tat, 2015. "Other-serving bias in advice-taking: When advisors receive more credit than blame," Organizational Behavior and Human Decision Processes, Elsevier, vol. 130(C), pages 13-25.
    16. Alba, Joseph W & Hutchinson, J Wesley, 1987. "Dimensions of Consumer Expertise," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(4), pages 411-454, March.
    17. Robert Fildes & Paul Goodwin, 2007. "Against Your Better Judgment? How Organizations Can Improve Their Use of Management Judgment in Forecasting," Interfaces, INFORMS, vol. 37(6), pages 570-576, December.
    18. Yaniv, Ilan, 2004. "Receiving other people's advice: Influence and benefit," Organizational Behavior and Human Decision Processes, Elsevier, vol. 93(1), pages 1-13, January.
    19. Brown, Jacqueline Johnson & Reingen, Peter H, 1987. "Social Ties and Word-of-Mouth Referral Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(3), pages 350-362, December.
    20. Jonas, Eva & Frey, Dieter, 2003. "Information search and presentation in advisor-client interactions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 91(2), pages 154-168, July.
    21. Gino, Francesca, 2008. "Do we listen to advice just because we paid for it? The impact of advice cost on its use," Organizational Behavior and Human Decision Processes, Elsevier, vol. 107(2), pages 234-245, November.
    22. Harvey, Nigel & Fischer, Ilan, 1997. "Taking Advice: Accepting Help, Improving Judgment, and Sharing Responsibility," Organizational Behavior and Human Decision Processes, Elsevier, vol. 70(2), pages 117-133, May.
    23. Kardes, Frank R, 1988. "Spontaneous Inference Processes in Advertising: The Effects of Conclusion Omission and Involvement on Persuasion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 225-233, September.
    24. Hadar, Liat & Fischer, Ilan, 2008. "Giving advice under uncertainty: What you do, what you should do, and what others think you do," Journal of Economic Psychology, Elsevier, vol. 29(5), pages 667-683, November.
    25. See, Kelly E. & Morrison, Elizabeth W. & Rothman, Naomi B. & Soll, Jack B., 2011. "The detrimental effects of power on confidence, advice taking, and accuracy," Organizational Behavior and Human Decision Processes, Elsevier, vol. 116(2), pages 272-285.
    26. Daylian M. Cain & George Loewenstein & Don A. Moore, 2011. "When Sunlight Fails to Disinfect: Understanding the Perverse Effects of Disclosing Conflicts of Interest," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(5), pages 836-857.
    27. repec:cup:judgdm:v:10:y:2015:i:2:p:144-171 is not listed on IDEAS
    28. Spassova, Gerri & Palmeira, Mauricio & Andrade, Eduardo B., 2018. "A ratings pattern heuristic in judgments of expertise: When being right Looks wrong," Organizational Behavior and Human Decision Processes, Elsevier, vol. 147(C), pages 26-47.
    29. Alison Wood Brooks & Francesca Gino & Maurice E. Schweitzer, 2015. "Smart People Ask for (My) Advice: Seeking Advice Boosts Perceptions of Competence," Management Science, INFORMS, vol. 61(6), pages 1421-1435, June.
    30. Yaniv, Ilan & Milyavsky, Maxim, 2007. "Using advice from multiple sources to revise and improve judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(1), pages 104-120, May.
    31. Hauser, John R & Urban, Glen L, 1979. "Assessment of Attribute Importances and Consumer Utility Functions: von Neumann-Morgenstern Theory Applied to Consumer Behavior," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 5(4), pages 251-262, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alison Wood Brooks & Francesca Gino & Maurice E. Schweitzer, 2015. "Smart People Ask for (My) Advice: Seeking Advice Boosts Perceptions of Competence," Management Science, INFORMS, vol. 61(6), pages 1421-1435, June.
    2. Kausel, Edgar E. & Culbertson, Satoris S. & Leiva, Pedro I. & Slaughter, Jerel E. & Jackson, Alexander T., 2015. "Too arrogant for their own good? Why and when narcissists dismiss advice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 131(C), pages 33-50.
    3. Effron, Daniel A. & Miller, Dale T., 2015. "Do as I say, not as I’ve done: Suffering for a misdeed reduces the hypocrisy of advising others against it," Organizational Behavior and Human Decision Processes, Elsevier, vol. 131(C), pages 16-32.
    4. Blunden, Hayley & Logg, Jennifer M. & Brooks, Alison Wood & John, Leslie K. & Gino, Francesca, 2019. "Seeker beware: The interpersonal costs of ignoring advice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 150(C), pages 83-100.
    5. Philipp Ecken & Richard Pibernik, 2016. "Hit or Miss: What Leads Experts to Take Advice for Long-Term Judgments?," Management Science, INFORMS, vol. 62(7), pages 2002-2021, July.
    6. Bonaccio, Silvia & Dalal, Reeshad S., 2006. "Advice taking and decision-making: An integrative literature review, and implications for the organizational sciences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 101(2), pages 127-151, November.
    7. Jodlbauer, Barbara & Jonas, Eva, 2011. "Forecasting clients' reactions: How does the perception of strategic behavior influence the acceptance of advice?," International Journal of Forecasting, Elsevier, vol. 27(1), pages 121-133, January.
    8. Spassova, Gerri & Palmeira, Mauricio & Andrade, Eduardo B., 2018. "A ratings pattern heuristic in judgments of expertise: When being right Looks wrong," Organizational Behavior and Human Decision Processes, Elsevier, vol. 147(C), pages 26-47.
    9. Van Swol, Lyn M., 2011. "Forecasting another's enjoyment versus giving the right answer: Trust, shared values, task effects, and confidence in improving the acceptance of advice," International Journal of Forecasting, Elsevier, vol. 27(1), pages 103-120, January.
    10. Jodlbauer, Barbara & Jonas, Eva, 2011. "Forecasting clients’ reactions: How does the perception of strategic behavior influence the acceptance of advice?," International Journal of Forecasting, Elsevier, vol. 27(1), pages 121-133.
    11. Gino, Francesca, 2008. "Do we listen to advice just because we paid for it? The impact of advice cost on its use," Organizational Behavior and Human Decision Processes, Elsevier, vol. 107(2), pages 234-245, November.
    12. Robert M. Gillenkirch & Julia Ortner & Sebastian Robert & Louis Velthuis, 2023. "Designing incentives and performance measurement for advisors: How to make decision-makers listen to advice," Working Papers 2304, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    13. Van Swol, Lyn M., 2011. "Forecasting another’s enjoyment versus giving the right answer: Trust, shared values, task effects, and confidence in improving the acceptance of advice," International Journal of Forecasting, Elsevier, vol. 27(1), pages 103-120.
    14. Winkler, Jens & Moser, Roger, 2016. "Biases in future-oriented Delphi studies: A cognitive perspective," Technological Forecasting and Social Change, Elsevier, vol. 105(C), pages 63-76.
    15. Gino, Francesca & Shang, Jen & Croson, Rachel, 2009. "The impact of information from similar or different advisors on judgment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 108(2), pages 287-302, March.
    16. See, Kelly E. & Morrison, Elizabeth W. & Rothman, Naomi B. & Soll, Jack B., 2011. "The detrimental effects of power on confidence, advice taking, and accuracy," Organizational Behavior and Human Decision Processes, Elsevier, vol. 116(2), pages 272-285.
    17. Albert E. Mannes, 2009. "Are We Wise About the Wisdom of Crowds? The Use of Group Judgments in Belief Revision," Management Science, INFORMS, vol. 55(8), pages 1267-1279, August.
    18. Palmeira, Mauricio & Spassova, Gerri & Keh, Hean Tat, 2015. "Other-serving bias in advice-taking: When advisors receive more credit than blame," Organizational Behavior and Human Decision Processes, Elsevier, vol. 130(C), pages 13-25.
    19. repec:cup:judgdm:v:11:y:2016:i:4:p:401-415 is not listed on IDEAS
    20. Soll, Jack B. & Mannes, Albert E., 2011. "Judgmental aggregation strategies depend on whether the self is involved," International Journal of Forecasting, Elsevier, vol. 27(1), pages 81-102, January.
    21. Yaniv, Ilan & Milyavsky, Maxim, 2007. "Using advice from multiple sources to revise and improve judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(1), pages 104-120, May.

    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:eee:jobhdp:v:156:y:2020:i:c:p:82-96. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/obhdp .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.