Expert rule versus majority rule under partial information Academic Article uri icon

abstract

  • We study the uncertain dichotomous choice model. Under some assumptions on the distribution of ‘expertise’ of the various panel members, the probability of the expert rule to be the optimal one is compared to that of the majority rule to be optimal. It turns out that for the former probability exceeds the latter by far, especially as the panel size becomes large.

publication date

  • September 1, 1993