Research Article

Mechanisms for enhancing the credibility of an adviser: prepayment and aligned incentives

  1. Anthony G. Patt1,*,
  2. Hannah R. Bowles2,
  3. David W. Cash3

Article first published online: 7 SEP 2006

DOI: 10.1002/bdm.532

Issue

Journal of Behavioral Decision Making

Journal of Behavioral Decision Making

Volume 19, Issue 4, pages 347–359, October 2006

Additional Information

How to Cite

Patt, A. G., Bowles, H. R. and Cash, D. W. (2006), Mechanisms for enhancing the credibility of an adviser: prepayment and aligned incentives. Journal of Behavioral Decision Making, 19: 347–359. doi: 10.1002/bdm.532

Author Information

  1. 1

    Boston University, USA

  2. 2

    Harvard University, USA

  3. 3

    Massachusetts Executive Office of Environmental Affairs, USA

*Boston University, Department of Geography and Environment, 675 Commonwealth Avenue, Boston, MA 02215, USA.

Publication History

  1. Issue published online: 21 SEP 2006
  2. Article first published online: 7 SEP 2006

Funded by

  • US National Oceanic and Atmospheric Administration, Office of Global Programs (NOAA/OGP). Grant Numbers: NA16GP2577, BCS-0004236

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Keywords:

  • advice;
  • judge adviser systems;
  • trust;
  • sustainable development

Abstract

We tested the effectiveness of prepayment for advice and aligned incentives as mechanisms for enhancing trust in unfamiliar advisers in decision-making under uncertainty. Participants were low-income Zimbabweans who played two rounds of the Monty Hall three-door game. In round 1, participants who purchased advice were significantly more likely to follow advice for how to win the game than were participants who received free advice. In round 2, the apparent effectiveness of advisers' suggestions in round 1 moderated participants' propensity to follow advice. If the round 1 advice appeared wrong, the credibility enhancing benefits of prepayment diminished. If the advice appeared right, the benefits of prepayment maintained. Hypotheses with regard to the benefits of aligned incentives received only weak support. Copyright © 2006 John Wiley & Sons, Ltd.

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