TY  - RPRT
        AU  - Powdthavee, Nattavudh
AU  - Riyanto, Yohanes E.
        TI  - Why Do People Pay for Useless Advice? Implications of Gambler's and Hot-Hand Fallacies in False-Expert Setting
        PY  - 2012/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6557
        UR  - https://www.iza.org/publications/dp6557
        AB  - We investigated experimentally whether people can be induced to believe in a non-existent expert, and subsequently pay for what can only be described as transparently useless advice about future chance events. Consistent with the theoretical predictions made by Rabin (2002) and Rabin and Vayanos (2010), we show empirically that the answer is yes and that the size of the error made systematically by people is large.
        KW  - information
KW  - expertise
KW  - gambler's fallacy
KW  - hot-hand
KW  - random streak
        ER  -