How Good is the Advice You Receive? The Influence of Social Value Orientation and Knowledge Asymmetry on the Formulation of Advice

What motivates advisors in the formulation of their advice? People seek advice so as to improve the quality of their decisions. But is the advice provided of a consistent quality in all circumstances? We suggest that advice formulation is a selective process. The quality of advice given to a decision maker, far from being consistent, is shaped by a number of factors, including the social value orientations of the advisors and knowledge asymmetry between advisors and their clients. A pilot study was conducted to assess the effect of social value orientations and knowledge asymmetry on the optimality of the advice provided by advisors. Results suggested advice optimality was influenced by knowledge asymmetry between the parties but not by the social value orientations of the advisors. Prosocials were found to exhibit the same type of strategic behaviour observed in competitors