This paper studies the problem of an uninformed decision maker who acquires expert advice prior to making a decision. I show that it is less costly to hire partisan agents than impartial agents, especially under advocacy, and that the decision maker prefers partisan advocacy to other forms of institutions. I also extend the literature, originating with Dewatripont and Tirole , to a setting with contracts that condition on information provided and not just the decision made.
Bibliographical notePublisher Copyright:
© 2012 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics