Advice and Decision Making
When it comes to the big decisions in life such as training and career choices, good advice is needed. For ill-advised decisions, including health and insurance issues may affect wide areas of life and over a long period of time. However, the availability of good advice is not the same for everyone. It is observed that poorer compared to wealthier people have less access to good advice. Wealthier circles have easier and faster possibilities to get good advice, whether through conversations within a network of similar well-off and well informed acquaintances, or through the financial ability to buy expertise - a possible factor for the persistence of social inequality.
During his five-year research professorship at the WZB, Andrew Schotter wants to investigate the phenomenon of the influence of advice on decisions, which despite its high practical relevance so far is still underexposed in economic theory. As an example case, college choice may apply. In this connection, Andrew Schotter will engage in a series of laboratory experiments investigating the influence of advice on school choice. Since benefitting from the advice of others matters in a variety of settings and economic institutions, Professor Schotter intends to broaden his approach in the coming years to include the impact of advice on markets and auctions and also in solving social dilemmas.