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Experts Know Best, but for Whom? Understanding Conflicts of Interest in the Marketplace (talk recording available)
Dr. Janet Schwartz
Tuesday, February 10, 2015, 01:00pm - 02:00pm
Tulane University, A.B. Freeman School of Business
Individuals commonly rely on the advice of experts to make health, financial and other important consumer decisions, yet the advice they receive can be biased due to experts’ conflicts of interest. Drawing on behavioral research on persuasion knowledge and the negligible effects of disclosing conflicts of interest, we investigate how people understand and react to different marketplace activities that create conflicts of interest by considering both sides of the advisor-advisee relationship. Using different samples of consumers and expert advisors we find that people incorporate information about potentially conflicted advice depending on a marketing activity’s perceived level of influence and how it drives trust in advisor-advisee relationships.