|Researchers:||Kevin Bauer, Oliver Hinz|
|Category:||Financial Intermediation, Experiment Center|
Rapid technological advancements, especially in the field of artificial intelligence promise unprecedented gains in productivity across all industries. But that is far from being all. Given their broad applicability and the increasing interaction with humans, artificial intelligence systems are likely to reshape social, cultural and political systems as well. Today, intelligent machines already mediate social interactions, make employment decisions and filter news and information. Against this background, understanding the behavior of humans and artificial intelligence systems in complex hybrid human-machine systems is crucial to be able to exploit the full potential of digitalization while at the same time minimizing associated risks. The project contributes to this endeavor by studying how the introduction of machines into economic decision-making processes affects human beliefs and behavior. In particular, we intend to study the following issues: (i) Do intelligent recommendation systems reinforce existing discriminatory patterns, ultimately leading to inefficient social equilibria? (ii) Does the replacement of human with machine labor crowd out social incentives, decreasing the efficiency of teams? (iii) Which factors facilitate trust and cooperation in hybrid human-machine systems? To answer these questions, we plan to conduct novel laboratory and field experiments and combine results with observational field data, allowing us to derive precise conclusions on underlying mechanics of human machine interactions. Novel insights gained are essential to navigate challenges associated with the steady increase in human machine systems in the pace of digitalization.
|287||Benjamin M. Abdel-Karim, Kevin Bauer, Oliver Hinz, Michael Kosfeld, Nicolas Winfried Pfeuffer||The Terminator of Social Welfare? The Economic Consequences of Algorithmic Discrimination||2020||Financial Intermediation, Experiment Center||Algorithmic Discrimination, Artificial Intelligence, Game Theory, Economics, Batch Learning|