Improving judgement with prepaid expert advice

Abstract Decision makers (“Judges”) often make decisions after obtaining advice from an Advisor. The two parties often share a psychological “contract” about what each contributes in expertise to the decision and receives in monetary outcomes from it. In a laboratory experiment, we varied Advisor Experitise and the opportunity for monetary rewards. As expected, these manipulations influenced advice quality, advice taking, and Judge post‐advice decision quality. The main contribution of the study, however, was the manipulation of the timing of monetary rewards (before or after the advising interaction). We found, as predicted, that committing money for expert—but not novice—advice increases Judges' use of advice and their subsequent estimation accuracy. Implications for advice giving and taking are discussed. Copyright © 2004 John Wiley & Sons, Ltd.