We explore whether behavioral biases impede the effective processing and interpretation of soft information in private …) common identity. Specifically, we find that using soft information in lending decisions leads to worse loan quality when loan … information in lending decisions …

, management holds soft information about individuals expertiseand thus improves on the matching of experts to problems; however … information about the quality ofthe provider's expertise, but facilitate good utilization of experts knowledge.In a …rm …) and the quality of matching between problemsand problem solvers (the market provides less information about experts'quality).[...] …