Giving and Receiving Advice∗

This paper reviews literature on communication between informed experts and uninformed decision makers. The research provides some insight into what constitutes a persuasive statement and under what conditions a decision maker will benefit from consulting an expert. I classify the literature along four dimensions: strategic, technological, institutional, and cultural. To the extent that decision makers and experts have different preferences, communication creates strategic problems. Technological considerations describe the domain of uncertainty, the cost of acquiring information, and the cost of manipulating information. The institution determines who has responsibility for making decisions and the rules that govern communication. Cultural factors describe the way in which agents interpret language.