Measuring preferences for algorithms — How willing are people to cede control to algorithms?

Radosveta Ivanova-Stenzel and Michel Tolksdorf

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2024, vol. 112, issue C

Abstract: We suggest a simple method to elicit individual preferences for algorithms. By altering the monetary incentives for ceding control to the algorithm, the menu-based approach allows for measuring in particular the degree of algorithm aversion. Using an experiment, we elicit preferences for algorithms in an environment with measurable performance accuracy under two conditions — the absence and the presence of information about the algorithm’s performance. Providing such information raises subjects’ willingness to rely on algorithms when ceding control to the algorithm is more costly than trusting in their own assessment. However, algorithms are still underutilized.

Keywords: Algorithm aversion; Delegation; Experiment; Preferences (search for similar items in EconPapers)
JEL-codes: C91 D83 D91 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:112:y:2024:i:c:s2214804324001071

DOI: 10.1016/j.socec.2024.102270

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