Arbeitspapier

Ruled by Robots: Preference for Algorithmic Decision Makers and Perceptions of Their Choices

As technology-assisted decision-making is becoming more widespread, it is important to understand how the algorithmic nature of the decisionmaker affects how decisions are perceived by the affected people. We use a laboratory experiment to study the preference for human or algorithmic decision makers in re-distributive decisions. In particular, we consider whether algorithmic decision maker will be preferred because of its unbiasedness. Contrary to previous findings, the majority of participants (over 60%) prefer the algorithm as a decision maker over a human – but this is not driven by concerns over biased decisions. Yet, despite this preference, the decisions made by humans are regarded more favorably. Participants judge the decisions to be equally fair, but are nonetheless less satisfied with the AI decisions. Subjective ratings of the decisions are mainly driven by own material interests and fairness ideals. For the latter, players display remarkable flexibility: they tolerate any explainable deviation between the actual decision and their ideals, but react very strongly and negatively to redistribution decisions that do not fit any fairness ideals. Our results suggest that even in the realm of moral decisions algorithmic decision-makers might be preferred, but actual performance of the algorithm plays an important role in how the decisions are rated.

Language
Englisch

Bibliographic citation
Series: Discussion Paper ; No. 439

Classification
Wirtschaft
Design of Experiments: Laboratory, Individual
Personal Income, Wealth, and Their Distributions
Criteria for Decision-Making under Risk and Uncertainty
Technological Change: Choices and Consequences; Diffusion Processes
Subject
delegation
algorithm aversion
redistribution
fairness

Event
Geistige Schöpfung
(who)
Chugunova, Marina
Luhan, Wolfgang
Event
Veröffentlichung
(who)
Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
(where)
München und Berlin
(when)
2023

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Chugunova, Marina
  • Luhan, Wolfgang
  • Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition

Time of origin

  • 2023

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