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Cheap Talk with Multiple Experts and Uncertain Biases

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  • Gulen Karakoc

Abstract

A decision maker solicits information from two partially informed experts and then makes a choice under uncertainty. The experts can be either moderately or extremely biased relative to the decision maker, which is their private information. I investigate the incentives of the experts to share their private information with the decision maker and analyze the resulting effects on information transmission. I show that it may be optimal to consult a single expert rather than two experts if the decision maker is sufficiently concerned about taking advice from extremely biased experts. In contrast to what may be expected, this result suggests that getting a second opinion may not always be helpful for decision making.

Suggested Citation

  • Gulen Karakoc, 2020. "Cheap Talk with Multiple Experts and Uncertain Biases," Working Papers 451, University of Milano-Bicocca, Department of Economics.
    • Handle: RePEc:mib:wpaper:451
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Cheap Talk; Multiple Experts; Asymmetric Information.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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