Peer effects in an automated world

Brice Corgnet, Roberto Hernán-González and Ricardo Mateo
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Roberto Hernán-González: BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC)
Ricardo Mateo: UNAV - Universidad de Navarra [Pamplona]
Authors registered in the RePEc Author Service: Roberto Hernán González

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Abstract: Beyond its technological impact, automation also transforms the social context of the workplace by weakening peer effects. We study the often-neglected effects of this transformation on work production. Using experiments in which people complete a sequential task, we show that humans who work with algorithms underperform those who work with other humans, especially when workers are rewarded under team incentives. Our findings stress that firms should account for the weakening of peer effects due to automation when assessing the cost-efficiency of replacing humans with algorithms.

Keywords: Incentives; Automation; Peer effects; Social pressure; Laboratory experiments (search for similar items in EconPapers)
Date: 2023-12-01
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Citations: View citations in EconPapers (3)

Published in Labour Economics, 2023, 85, 15 p. ⟨10.1016/j.labeco.2023.102455⟩

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Journal Article: Peer effects in an automated world (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04376052

DOI: 10.1016/j.labeco.2023.102455

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