Getting advice from the same source but at a different cost

Getting advice from the same source but at a different cost

by Francesca Gino

Part of Working paper / Division of Research, Harvard Business School -- 05-017

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Facing a decision, people often ask for advice. Advice taking and advice giving are indeed common activities across a wide range of contexts, yet whether people use advice in a way that is helpful to them is not well understood. How do people evaluate the usefulness of advice they receive? Drawing on aspects of behavioral decision theory, this paper argues that the cost of advice, independent of its quality, will affect how it is used.

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