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

    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, Oxford University Press, 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. Thomas Schultze & Anne-Fernandine Rakotoarisoa & Stefan Schulz-Hardt, 2015. "Effects of distance between initial estimates and advice on advice utilization," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 10(2), pages 144-171, March.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. Ariely, Dan & Levav, Jonathan, 2000. "Sequential Choice in Group Settings: Taking the Road Less Traveled and Less Enjoyed," Journal of Consumer Research, Oxford University Press, vol. 27(3), pages 279-290, December.
    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, Oxford University Press, 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, Oxford University Press, 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, Oxford University Press, vol. 23(3), pages 219-239, December.
    14. 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.
    15. Alba, Joseph W & Hutchinson, J Wesley, 1987. "Dimensions of Consumer Expertise," Journal of Consumer Research, Oxford University Press, vol. 13(4), pages 411-454, March.
    16. 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.
    17. 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.
    18. Brown, Jacqueline Johnson & Reingen, Peter H, 1987. "Social Ties and Word-of-Mouth Referral Behavior," Journal of Consumer Research, Oxford University Press, vol. 14(3), pages 350-362, December.
    19. 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.
    20. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    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, Oxford University Press, 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, Oxford University Press, vol. 37(5), pages 836-857.
    27. 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.
    28. 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.
    29. 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.
    30. 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, Oxford University Press, vol. 5(4), pages 251-262, March.
    Full references (including those not matched with items on IDEAS)

    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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/obhdp .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.