On the evolution of professional consulting
In this experiment agents repeatedly invest in three state-specific assets. Theory requires portfolios to match the probabilities of the states. The treatments endow none, one, three, or all (of eight) investors with probability information. Will professional consulting evolve as an entrepreneurial activity? Will decisions follow theory or the 1/n-heuristic of equal investments in all assets? Will agents with probability information be asked and paid for advice? Portfolios designed with probability information reect the benchmark but do not converge to it over time. Learning to avoid the 1/n-heuristic is extremely fast. Although advice is sought and readily paid for, recommendations are not always followed.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Schotter, A. & Sopher, B., 2001.
"Social Learning and Coordination Conventions in Inter-Generational Games: An Experimental Study,"
01-10, C.V. Starr Center for Applied Economics, New York University.
- Andrew Schotter & Barry Sopher, 2003. "Social Learning and Coordination Conventions in Intergenerational Games: An Experimental Study," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 498-529, June.
- Langholtz, Harvey & Gettys, Charles & Foote, Bobbie, 1993. "Resource-Allocation Behavior under Certainty, Risk, and Uncertainty," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(2), pages 203-224, March.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Andrew Schotter, 2003. "Decision Making with Naive Advice," American Economic Review, American Economic Association, vol. 93(2), pages 196-201, May.
- Carlos Alós-Ferrer & Ana B. Ania, 2003.
"The Asset Market Game,"
Vienna Economics Papers
0320, University of Vienna, Department of Economics.
- Richard H. Thaler & Shlomo Benartzi, 2001. "Naive Diversification Strategies in Defined Contribution Saving Plans," American Economic Review, American Economic Association, vol. 91(1), pages 79-98, March.
- Thomas Gehrig & Werner Güth & Rene Levinsky & Vera Popova, 2008. "Do investors optimize, follow heuristics, or listen to experts?," Jena Economic Research Papers 2008-086, Friedrich-Schiller-University Jena.
- Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053.
- Harvey, Nigel & Harries, Clare, 2004. "Effects of judges' forecasting on their later combination of forecasts for the same outcomes," International Journal of Forecasting, Elsevier, vol. 20(3), pages 391-409.
- V. Crawford & J. Sobel, 2010.
"Strategic Information Transmission,"
Levine's Working Paper Archive
544, David K. Levine.
- Vulkan, Nir, 2000. " An Economist's Perspective on Probability Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 101-18, February.
- Schotter, Andrew & Sopher, Barry, 2007.
"Advice and behavior in intergenerational ultimatum games: An experimental approach,"
Games and Economic Behavior,
Elsevier, vol. 58(2), pages 365-393, February.
- Shotter, A. & Sopher, B., 2001. "Advice and Behavior in Intergenerational Ultimatum Games: An Experimental Approach," Working Papers 01-04, C.V. Starr Center for Applied Economics, New York University.
- Blume, Lawrence & Easley, David, 1992. "Evolution and market behavior," Journal of Economic Theory, Elsevier, vol. 58(1), pages 9-40, October.
- Busemeyer, Jerome R. & Swenson, Kenneth N. & Lazarte, Alejandro, 1986. "An adaptive approach to resource allocation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 38(3), pages 318-341, December.
- Langholtz, Harvey & Gettys, Charles & Foote, Bobbie, 1994. "Allocating Resources over Time in Benign and Harsh Environments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 58(1), pages 28-50, April.
- Langholtz, Harvey J. & Ball, Christopher & Sopchak, Barron & Auble, Jacqueline, 1997. "Resource-Allocation Behavior in Complex but Commonplace Tasks," Organizational Behavior and Human Decision Processes, Elsevier, vol. 70(3), pages 249-266, June.
- Ball, Christopher T. & Langholtz, Harvey J. & Auble, Jacqueline & Sopchak, Barron, 1998. "Resource-Allocation Strategies: A Verbal Protocol Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(1), pages 70-88, October.
- Ananish Chaudhuri & Sara Graziano & Pushkar Maitra, 2006. "Social Learning and Norms in a Public Goods Experiment with Inter-Generational Advice -super-1," Review of Economic Studies, Oxford University Press, vol. 73(2), pages 357-380.
- Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
- Andrew Schotter & Barry Sopher, 2006. "Trust and trustworthiness in games: An experimental study of intergenerational advice," Experimental Economics, Springer, vol. 9(2), pages 123-145, June.
- Raghuram Iyengar & Andrew Schotter, 2008. "Learning under supervision: an experimental study," Experimental Economics, Springer, vol. 11(2), pages 154-173, June.
- 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.
- Kuang, Xi (Jason) & Weber, Roberto A. & Dana, Jason, 2007. "How effective is advice from interested parties?: An experimental test using a pure coordination game," Journal of Economic Behavior & Organization, Elsevier, vol. 62(4), pages 591-604, April.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:76:y:2010:i:1:p:113-126. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.