Competence and advice

Abstract

AbstractWe develop a theory of policy advice that focuses on the relationship between the competence of the advisor (e.g., an expert bureaucracy) and the quality of advice that the leader may expect. We describe important tensions between these features present in a wide class of substantively important circumstances. These tensions point to the presence of a trade‐off between receiving advice more often and receiving more informative advice. The optimal realization of this trade‐off for the leader sometimes induces her to prefer advisors of limited competence—a preference that, we show, is robust under different informational assumptions. We consider how institutional tools available to leaders affect preferences for advisor competence and the quality of advice they may expect to receive in equilibrium.