Why we shouldn’t always trust expert ratings
Matthew J. Kotchen, Matthew Potoski, 24 December 2011Many spheres of economic activity rely on expert ratings to guide individuals’ choices. An obvious concern arises when evaluators have incentives to distort ratings for private gain. This column uses data from the USA Today Coaches Poll of the top 25 teams in US college football to study whether agents are able to overcome conflicts of interest and provide unbiased rankings. It finds strong evidence that coaches distort rankings for reputation benefits and financial rewards.Full Article: Why we shouldn’t always trust expert ratings
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