We study the choice of a principal to either delegate a decision to a group of careerist experts, or to consult them … individually and keep the decision-making power. Our model predicts a trade-off between information acquisition and information … aggregation. On the one hand, the expected benefit from being informed is larger in case the experts are consulted individually …

Reputational herding has been considered as a driving force behind economic and financial forecasts clustered around … is fairly stable and adds to overall welfare. Our results support the assumption of rational herding as a driving force …