EXPERT-NOVICE JUDGMENTS AND NEW CUE SETS - PROCESS VERSUS OUTCOME

This paper reports on an experiment that investigated the influence of a new cue set on the decision-behavior of actual expert and novice investors. Both subject groups were provided with financial cues constructed from both traditional and inflation-adjusted accounting data compiled from annual reports. The task required the subjects to make recommendations concerning the attractiveness of forty stocks from the chemical and drug industries. A regression model that controlled for predecisional influences and artifacts associated with simple decision-processes was used to analyze the data. The experts relative to the novices made recommendations that were more consistent with the normative prescription of the new cue set.