Advice versus choice

•Seemingly well-intended advice differs from what advisers would choose themselves.•Advice tends to be paternalistically biased and more cautious than personal choice.•Steps that would seem to make advice more trustworthy can exacerbate the problem.

Despite the near universality of the maxim that one should treat others as one ought to be treated, even well-intended advisers often advise others to act differently than they choose for themselves. We review several psychological factors that contribute to biased advice. Absent pecuniary motives to the contrary, advice tends to be paternalistically biased in favor of caution. Policies that would intuitively promote quality advice — such as making advisers accountable, taking advice from advisers who value the relationship, or having advisers disclose potential conflicts of interest — can perversely lower the quality of advice.